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What is the IncomePlus Fund’s 1031/721 exchange program?

The IncomePlus Fund has the right but not the obligation to acquire assets through the Origin Exchange program. If the IncomePlus Fund does not execute its fair market value option to acquire the DST, the expectation is that the asset will continue to be held by DST investors until it is sold. At that time, the investor could elect to complete another 1031 exchange or take cash and pay taxes on the investment.

1031 exchange: Investors can defer capital gains tax by exchanging a property for interest in a Delaware Statutory Trust (DST).

721 exchange: DST investors may later convert their DST interest into Fund ownership units through a tax-deferred 721 exchange.

Additionally, Origin may offer sidecar opportunities to investors that can be 721 exchanged into the Fund once stabilized.