The Oklahoma Bar Journal May 2026

ABOUT THE AUTHORS

6. Del. Code Ann. tit. 12, §3801 et seq. (2023). 7. Rev. Rul. 2004-86, 2004-2 C.B. 191. “Holdings: (1) The Delaware Statutory Trust is an investment trust, under §301.7701-4(c), that will be classified as a trust for federal tax purposes. (2) A taxpayer may exchange real property for an interest in the Delaware Statutory Trust without recognition of gain or loss under §1031, if the other requirements of §1031 are satisfied.” 8. Id. “interests in the trust may be qualifying property in a tax-deferred, like-kind exchange if the other requirements for such treatment are satisfied.” 9. Id. Except in the event of an original tenant bankruptcy or insolvency. 10. 26 U.S.C. §1250(a); IRS Pub. 544, Sales and Other Dispositions of Assets (2023). 11. 26 U.S.C. §1411 (2025). 12. IRS Publication 527 , Residential Rental Property §2 (2024). 13. IRS Publication 946 , How to Depreciate Property § “Recovery Periods Under MACRS” (2024). 14. Net Investment Income Tax, Topic No. 559, Internal Revenue Service; Instructions for Form 8960, 2024. 15. 26 U.S.C. §1411 (net investment income tax). 16. Priv. Ltr. Rul. 200521002 (May 27, 2005). 17. Delaware Statutory Trust Act, 12 Del. C. §3801 et seq. ; Rev. Rul. 2004-86. 18. Instructions for Form 6198 (2024), At-Risk Rules (Treas. Reg. §1.465-27). 19. 26 C.F.R. §1.465-27 (qualified nonrecourse financing). 20. I.R.C. §1014(a) (2025). 21. I.R.C. §1033 (2025). 22. Private letter ruling (PLR) 200644019 (Nov. 3, 2006). Although not precedent, this PLR allowed a taxpayer to use DST interests as replacement property in a §1033 exchange after a condemnation. 23. 17 C.F.R. §230.501(a) (2025). 24. Revenue Act of 1921, ch. 136, §202(c), 42 Stat. 227, 230 (1921). 25. Tax Cuts and Jobs Act, Pub. L. No. 115-97, §13303, 131 Stat. 2054, 2124 (2017). 26. Public Law 119-21, An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14, 139 Stat. 72 (July 4, 2025). 27. Evan Liddiard, “‘Big Beautiful’ Tax Bill Now Law: In-Depth Analysis,” Nat’l Ass’n of REALTORS, (July 14, 2025), Big Beautiful Tax Bill Now Law: In-Depth Analysis, NAR, https://bit.ly/47XjOwQ. 28. 26 U.S.C. §721(a): “No gain or loss shall be recognized to a partnership or to any of its partners in the case of a contribution of property to the partnership in exchange for an interest in the partnership.” 29. Treas. Reg. §1.721-1(a): confirms that the contributor receives a partnership interest in exchange for the contributed property.

John Newhouse is a consultant and attorney for Charis Consulting LLC, where he provides risk management,

investment and tax-mitigation strategies. He graduated from the TU College of Law in 2006. In addition to numerous financial securities licenses, he holds the certified divorce financial analyst and accredited investment fiduciary designations. He also serves as an adjunct professor at the TU Collins College of Business, where he teaches entrepreneurial law, employment law and legal environment of business. Mr. Newhouse specializes in applying the use and benefits of various DSTs and private placement investments for clients. He graduated from the TU College of Law in 2000. In addition to holding numerous financial securities licenses, he is a member of the Missouri Bar Association, a certified public accountant licensed with the Missouri State Board of Accountancy, and he holds the personal financial specialist credential. He serves on the Mission University Board of Trustees, where he also teaches business law as an adjunct professor. ENDNOTES 1. J. Max Nowakowski, “The Basics of a 1031 Like-Kind Exchange,” 95 OBJ 42 (June 2024). 2. Rev. Rul. 2004-86, 2004-2 C.B. 191. 3. J. Max Nowakowski, “The Basics of a 1031 Like-Kind Exchange,” 95 OBJ 42 (June 2024). 4. I.R.C. §1001(a) (2025). 5. Treas. Reg. §1.1031(k)-1(g)(4)(i) (as amended in 1991). Ben Newhouse is the founder of Vineyard Asset Management LLC, a boutique wealth management firm.

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

32 | MAY 2026

THE OKLAHOMA BAR JOURNAL