Front Range owners use 1031/DSTs to step out of active management while deferring Colorado + federal tax.
The typical Denver home is worth about $559,000 (-3.6% over the past year, per Zillow's home value index). For owners of appreciated Denver investment property, a sale can trigger a large tax bill — which a 1031 exchange into a Delaware Statutory Trust can defer while moving you out of active management.
Denver market snapshot
Home value & YoY: Zillow Home Value Index, 2026. Cap-rate range approximate — verify for your asset and submarket.
The tax on a Denver sale
Because Denver is in Colorado, a gain is taxed as ordinary income up to 4.4%, plus the federal 20% rate and 3.8% NIIT — a combined ~28.2%. A 1031 exchange into a DST defers the whole bill.
See the full Colorado 1031 rules, tax math, and state-specific reporting →
Baker 1031 near Denver
Realized programs on Denver-area property. Sponsor-reported, net-to-investor, not independently verified; past performance ≠ future results.
| Program | Sponsor | Avg annual | Equity × | Hold |
|---|---|---|---|---|
| Curtis Hotel | Syndicated Equities | 14.16% | 1.44x | 2.75 yr |
Denver FAQ
What's the typical home value in Denver?
The typical Denver home value is about $559,000 (-3.6% year-over-year, per Zillow's home value index, 2026). Owners of appreciated Denver rental or investment property often use a 1031 exchange into a DST to defer tax and move to passive ownership.
What tax would I owe selling investment property in Denver?
Denver sits in Colorado, which taxes gains as ordinary income up to 4.4%; with the federal 20% rate and 3.8% NIIT, the combined bill can reach ~28.2%. A 1031 exchange into a DST defers it. See the full Colorado rules for details.
Does a DST have to be located in Denver?
No. A DST doesn't have to hold Denver (or even Colorado) property — you can exchange your Denver sale proceeds into vetted DST offerings anywhere in the country. We match the replacement to your goals, not your ZIP code.
Disclosures
This page is educational and is not investment, tax, or legal advice, or an offer to sell or a solicitation to buy any security. Home-value data is from Zillow's home value index (2026) and cap-rate ranges are approximate — verify current figures. State tax rules are summarized; confirm with your CPA and attorney. For accredited investors only. Representatives may transact business only in states where registered or exempt. Securities offered through Aurora Securities, Inc., member FINRA/SIPC; Baker 1031 Investments, LLC is independent of Aurora. Past performance does not guarantee future results.