Larry Karp
Understanding Capital Gains Tax Deferral Strategies: An Educational Overview With Larry Karp Of 1031 Financial
Everyone wants to keep more of what they’ve earned. That’s where a 1031 exchange can help. Investors can defer capital gains tax by reinvesting proceeds from the sale of one investment property into another or several properties of equal or greater value.
At 1031 Financial, Larry Karp focuses on Delaware Statutory Trust (DST) Reg D private placement investments, a specialization he has held since 2023. DSTs provide fractional ownership in institutional-size real estate while qualifying as replacement property under IRS Revenue Ruling 2004-86. As Karp notes, “I work with clients focused on long-term planning of preserving their generational wealth. A key part of the planning is mitigating the tax impacts on their real estate holdings.”
“Excluding primary residences, investment real estate held for productive use in a trade or business or for investment qualifies for a Section 1031 Exchange. For investors seeking to transition away from active property management, DSTs offer a structure for fractional, passive ownership. Through a DST, investors can allocate equity into managed commercial real estate assets typically otherwise difficult to acquire individually. These structures can hold various property types, including multifamily, Triple Net Lease, self-storage facilities and office buildings.”
“A 1031 exchange allows investors to defer capital gains tax when transitioning from active management into passive structures like DSTs. This strategy can help investors grow real estate portfolios, potentially diversify risk across multiple assets and maintain equity that would otherwise be lost to taxes.”
Karp’s career centers on a customer-centric approach to sales and consulting. “I come from large enterprise sales and consulting, where I focus on solving the client’s problem rather than just selling products,” Karp says. “We identify the client’s specific needs and objectives, then craft a tailored solution, rather than focusing on how many widgets we can sell.”
Karp holds a Bachelor’s in Economics from Clark University and an AI Strategy credential from UC Berkeley. A seasoned enterprise solutions professional with prior senior roles at Accenture, Sprint and Verizon, he’s a registered financial professional holding SIE, Series 63 and Series 22 securities licenses.
1031 Financial is located at 433 Plaza Real, Ste. 275, Boca Raton. For more information, call 516-350-2643 or visit 1031financial.com.
This is not a solicitation or an offer to sell any securities. DST investments can only be marketed through a Private Placement Memorandum (PPM) and are only available to accredited investors and accredited entities. If you are unsure if you are an accredited investor and/or an accredited entity please verify with your CPA and/or Attorney. Investor situations and objectives vary, this information is not intended to indicate suitability for any particular investor.
DST investments are speculative, illiquid and can expose investors to risks including the potential loss of the entire investment principal, potential property value loss, foreclosure and loss of management control. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed.
IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation.
Securities offered through 1031 Securities, Inc., member FINRA/SIPC. 1031 Securities, Inc. and 1031 Financial are independent, unaffiliated, do not provide tax advice and are not tax advisors.
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