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Understanding capital gains taxes from a property sale and the legal strategies you can pursue to manage tax liabilities from selling an asset can help you preserve the wealth you’ve built in your property. Although you may have heard of using a 1031 exchange to defer capital gains tax from real estate sales, do you have other options for avoiding capital gains tax without a 1031 exchange?

In this story, 453 Trust Powered by Pennington Law highlights alternatives to 1031 exchanges for managing the tax implications of a property sale, including deferred sales trusts.

What Is a 1031 Exchange?

A 1031 exchange allows a property owner to defer paying capital gains taxes after selling a piece of real estate that has appreciated during ownership. When real estate gains in value during ownership, the owner must pay capital gains tax (usually 15% or 20%) on the amount of appreciation — the difference between the property’s value when the owner acquired it and the value when the owner sold it. With a 1031 exchange, a property owner can defer paying capital gains taxes when they reinvest the sale proceeds through an intermediary facilitator in other qualifying real estate within a specific timeframe after the sale.

What Are the Benefits of a 1031 Exchange?

A 1031 exchange can offer a property owner various benefits to assist with financial and legal planning when selling their property. The top 1031 exchange benefits include the following:

• Deferring capital gains taxes – A 1031 exchange allows a property owner to defer capital gains tax when they sell a piece of real estate by reinvesting the sale proceeds into a new property.
• Enabling reinvestment into a property with greater growth potential – 1031 exchanges allow property owners to reinvest their gains from one real estate investment that has reached its full growth potential into another property with future growth potential.
• Passing assets to heirs – Using a 1031 exchange to reinvest money in real estate, a person’s beneficiaries may avoid capital gains taxes once they inherit the person’s real estate holdings, since they inherit the property on a “stepped up” basis at the current market value.

What Are the Limitations of a 1031 Exchange?

Although a 1031 exchange can offer numerous financial benefits, it may also have various drawbacks and limitations that make it unsuitable, depending on a property owner’s financial needs and goals.

Some of the major limitations of a 1031 exchange include the following:

• Limitations on reinvestment – 1031 exchanges only allow property sellers to reinvest their sale proceeds into other real estate. For example, a seller may not reinvest the money into a business or stocks.
• Deadlines for reinvestment – A 1031 exchange requires a seller to find and reinvest the sale proceeds into a qualifying property within a specific timeframe after the prope

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Stock market news has been dominated by artificial intelligence (AI), and retail AI investors appear to be holding steady on their AI stocks despite debate over whether an AI bubble is forming.

The Motley Fool’s 2026 AI Investor Outlook Report found that less than 10% of AI investors plan to reduce their AI stock exposure over the next year, while about 60% of all Motley Fool survey respondents are confident in AI stocks’ long-term returns. This suggests that individual investors are buying into AI’s potential for long-term growth even amid short-term volatility.

The survey’s upbeat sentiment also reflects a broader trend playing out in the stock market. Of the 10 publicly traded companies that score highest for AI readiness and execution in The Motley Fool’s Moneyball database as of Nov. 24, 2025, six have beaten the S&P 500 over the past five years. Overall, those 10 stocks had an average return of 220% compared to the S&P 500’s 84% over that period.

Stocks with strong AI capabilities outperforming the S&P 500 over the long term indicate that AI investors’ optimism around AI aligns with real, measurable business performance. The survey results suggest that this optimism is spreading broadly, encompassing diverse demographic and income groups, signaling growing confidence in AI-driven businesses and leadership.

AI investors and younger, wealthier Americans drive confidence in AI stocks

Overall, 62% of respondents surveyed by The Motley Fool say they are confident that companies investing heavily in AI will deliver strong, long-term returns. That share jumps to 93% among investors who already own AI-related stocks and AI ETFs, showing that existing AI investors are bullish on the technology’s trajectory.

Confidence in AI’s ability to generate long-term returns is highest among younger adults and high-income Americans: 67% of Gen Z and 63% of millennials express long-term optimism, along with 65% to 71% of those earning between $150,000 and $200,000 or more annually. Baby boomers remain the most skeptical group, split evenly at 50% confidence.

Expectations that AI will deliver strong returns to companies that invest in the technology are based on its ability to fundamentally change business and the economy, according to Asit Sharma, CPA, senior investment analyst at The Motley Fool, who covers AI stocks and the technology sector.

“The continued progress in capabilities of the latest frontier models, the productive employment of capital across the economy to support AI infrastructure, and ris

The 74 // Getty images

Many people prefer restaurants that specialize and perfect a certain type of cuisine — they don’t want their barbecue restaurant to offer sushi, and see extensive menus as a worrisome sign of mediocrity.

On the other hand, they may not want a hotel that excels in only one area — they want every hotel they stay at to have clean sheets and towels, hot water and a quiet environment.

What about schools? Are they more like restaurants or hotels? At the high school level, they might be more like restaurants in that they can offer a variety of experiences that allow students to start to develop specialties. But elementary schools should probably be more like hotels and provide consistently strong services — and outcomes — for all kids.

When it comes to the basics of reading and math, how much within-school specialization is there at the elementary levels? That is, are there schools and districts that do a great job of teaching kids to read but maybe aren’t so good at teaching math?

To find out, The 74 looked back at projects that last year identified districts that did an exceptional job of teaching kids to read by third grade and be proficient in math by eighth grade. Among those positive outliers, 140 districts appeared on both of the lists. That is, these districts were producing outstanding results across subjects and grade levels.

In contrast, 14 districts were identified that were exceptional in one subject but significantly underperformed expectations in the other. Among those, 12 of the 14 were strong in math but weak in reading.

To look at school-level results,2025 test scores in the state of Mississippi were used as, a good test to see whether they specialized or were consistently strong, since the state has some of the best schools in the country.

First, reading scores were examined to see if they correlated with performance in math and science. A correlation of 1.0 would mean the two trends were moving in perfect lockstep, while a correlation of 0.0 would suggest that the two variables were not associated with each other at all. As seen in the table below, there were very strong correlations across academic subject areas. For example, the correlation across school-level reading and math scores was 0.87, which suggests a very strong relationship.

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What will homeowners ask design and construction pros for in 2026? Expect trends that are both boldly expressive and deeply rooted in classic craftsmanship.

Here are the top 11 Houzz U.S. home design trend predictions for 2026, informed by an analysis of activity from the platform’s 70 million-plus homeowners and home design enthusiasts, and more than 3 million construction and design professionals. These insights reflect what professionals share during interviews and what homeowners and pros are searching for, saving and discussing on Houzz.

Jeff Jones; design: Natalie Clayman Interior Design

1. Traditional Details

Traditional style is back, but not in the formal way you might remember. Today’s version feels warm, grounded and quietly elegant, led by English country and modern Tudor influences. In kitchens, inset cabinetry, plate racks, arched range hoods and rich woods bring handcrafted charm.

According to the 2025 U.S. Houzz Kitchen Trends Study, traditional style rose 5 percentage points among renovating homeowners compared with the previous year, signaling a renewed appreciation for comfort, craftsmanship and classic detail. Curves, arches and scalloped edges soften spaces throughout the home. Built-ins, paneling and detailed millwork add depth and character. Earthy tones like olive green, taupe and deep brown, along with stained woods and muted blues or burgundies, reinforce the timeless appeal of this style.

M Real Estate Photography; design: Celaya | Soloway Interiors

2. Flat-Panel Cabinets and Vanities

Sleek and streamlined flat-panel, or slab-front, cabinets and vanities are gaining ground — even in traditional- and transitional-style rooms. Smooth, unframed doors and subtle edge profiles give cabinets a refined, custom look that feels modern yet timeless. They’re also easy to wipe clean. Warm wood tones, matte finishes and minimalist hardware keep the style inviting rather than stark. According to