1031 Exchanges
Sell a rental or commercial property, keep the tax on your gain deferred, and move into direct oil and gas ownership, where Summit targets 3–5x over three to five years for each project.
- Keep the tax on your property sale deferred
- Trade tenants and repairs for a share of producing wells
- Spread your wealth beyond real estate
Same tax deferral, different kind of property
When you sell a property you have held for business or as a long-term holding, a 1031 exchange lets you put off the tax on your gain, as long as you buy similar property with the money.
“Similar” is broader than most people think. Real estate can generally be swapped for other real estate, and certain oil and gas interests count. That means you can move out of a building and into a share of producing wells without paying tax on the sale.
The clock you need to know
From landlord to owner of producing wells
Many sellers choose a 1031 exchange into oil and gas because they are ready to stop managing tenants, and ready for some of their wealth to sit outside real estate.
Owning a rental
- Finding and managing tenants
- Repairs, vacancies and late rent
- Most of your wealth in one asset class
- Income depends on one building
Owning a working interest
- An experienced operator runs the wells
- Regular reporting on production and costs
- A voice in major decisions as a JV member
- A yearly production deduction as wells produce
Get these right
- Use an exchange companyNever take the sale money yourself, or the exchange can fail.
- Watch for leftover cashAny money you don’t reinvest is generally taxable.
- Replace your mortgageIf you paid off a loan, you usually need new debt or added cash to keep the full deferral.
- Confirm the interest qualifiesYour exchange company and tax adviser should sign off before Day 45.
Our 45-Day Identification Checklist walks through each one.
The Investor Kit
Everything in one place to help you decide whether direct oil and gas ownership is right for you: how Summit works, how the joint venture structure works, and what to expect from start to finish.
Accredited participants who request it also receive
- A private strategy call with our team
- Access to our full library of guides
- Information on current projects, once accredited status is verified
