Frequently asked questions

This page is educational. Tax, legal, and investment decisions should be reviewed with licensed professionals who know your facts.

About Hatch

Selling your property

Real estate 101

Tax basics

Educational only. Hatch does not provide tax advice. Tax outcomes depend on your facts and CPA review. See full disclosures.

1031 exchanges

1031 exchanges have strict rules and deadlines. Hatch is not a Qualified Intermediary and does not determine whether your exchange qualifies. See full disclosures.

DSTs

DSTs are private real estate investments that may be illiquid, fee-heavy, sponsor-dependent, and subject to loss. Distributions and tax treatment are not guaranteed. See full disclosures.

721-style structures

721-style structures are complex partnership transactions. Availability, tax treatment, liquidity, control, and future exchange options depend on the specific structure. See full disclosures.

Cash sale & other paths

Risks, fees, conflicts

Hatch may receive compensation from third parties, which may create conflicts of interest. You are free to use professionals of your own choosing. See full disclosures.

Process & advisors

Estate & family planning

Disclosures

Next step

Still sorting through the options?

Hatch can help you organize the decision before you list, exchange, contribute, or reinvest. Bring the property facts. We will help you understand what questions to ask next.

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Still have questions? We’ll walk you through it.

What does Hatch do?

Who is Hatch for?

Do I need to know whether I want a 1031, DST, or 721-style structure before talking to Hatch?

Is Hatch a buyer?

Is Hatch a broker?

Does Hatch give tax advice?

Does Hatch give investment advice?

Why does this decision need so much explanation?

What is the simplest way to think about the decision?

What should I do before listing my property?

What is the biggest mistake owners make early?

Should I sell before deciding where the proceeds will go?

Can I sell my property and then decide later whether to do a 1031 exchange?

Should I sell with tenants in place?

Should I vacate the property before selling?

Should I sell one property at a time or as a portfolio?

What does a broker actually do in this process?

Can I use my own broker?

How does debt affect the sale?

What happens if my property has a low mortgage balance?

What happens if my property has a high mortgage balance?

Do repairs need to be completed before sale?

What documents should I prepare before selling?

What is due diligence?

What can kill a sale during diligence?

What is a retrade?

How long does a sale usually take?

How should I compare offers?

What is NOI?

What expenses are usually included in NOI?

What expenses are usually excluded from NOI?

What is a cap rate?

Does a higher cap rate mean a better deal?

What is market value?

What is appraised value?

What is a rent roll?

What is T12?

What is pro forma NOI?

What is vacancy?

What is bad debt?

What is DSCR?

What is LTV?

What is basis?

What is adjusted basis?

What is equity?

What is a capital improvement?

What is deferred maintenance?

What is a sponsor?

What is a distribution?

How are taxes calculated when I sell a rental property?

What is net sale price?

What is taxable gain?

Is my tax based on equity or gain?

What is capital gains tax?

What are federal long-term capital gains rates?

What is Net Investment Income Tax?

What is state capital gains tax?

Do I pay tax in the state where I live or where the property is located?

What is depreciation?

What is depreciation recapture?

What if I never claimed depreciation?

What is adjusted basis after depreciation?

What is a simple gain example?

Does a 1031 exchange avoid depreciation recapture?

What is basis carryover?

What is step-up in basis?

What is boot?

What is estimated tax?

What tax forms may be involved in a sale or exchange?

Does the primary residence exclusion apply to rental property?

What records should I give my CPA?

What is a 1031 exchange?

What property qualifies for a 1031 exchange?

What does like-kind mean for real estate?

Can I exchange into a property in another state?

Can I exchange U.S. property for foreign property?

Can I use a 1031 exchange for my personal home?

Can partnership interests or LLC interests qualify for 1031 treatment?

What is a qualified intermediary?

Why can’t I touch the sale proceeds?