Streamline Your 1031 Exchange

A 1031 Exchange allows real estate investors to defer capital gains taxes by reinvesting proceeds from the sale of one property into another like-kind property, supporting portfolio growth and tax savings.

For a valid 1031 Exchange, investors must identify replacement properties within 45 days and complete the exchange within 180 days. Properties must also be like-kind and used for business or investment.

Properties held for business or investment, such as commercial buildings, rental homes, and land, typically qualify. The replacement property must be like-kind but doesn’t need to be identical in type.

A Qualified Intermediary (QI) holds the sale proceeds and facilitates the transaction to prevent the taxpayer from accessing the funds, ensuring compliance with IRS rules for tax deferral.

The IRS requires a 45-day identification period and a 180-day exchange completion period. Missing these deadlines can disqualify the exchange and trigger capital gains taxes.