As your real estate advisor in Hawaii, I know transitioning from a condo to a single-family home (SFH) via a 1031 exchange is a smart move for many investors. It’s fully allowed under IRS rules—both properties are real estate held for investment or business use, so “like-kind” is satisfied even if one is a high-rise condo on Oahu and the other is a detached home on Maui or the Big Island. Hawaii’s market in 2026 makes this especially timely: condo inventory is relatively more

As a real estate investor or homeowner in Hawaii, selling an investment property often means facing significant capital gains taxes—both federal and state. Long-term federal rates can reach 20% plus a 3.8% Net Investment Income Tax, while Hawaii taxes capital gains at rates up to 7.25%. In a market where properties on Oahu, Maui, or the Big Island appreciate rapidly, these taxes can erode your equity and limit your next investment. Enter the 1031 exchange (named after Sectio