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A real estate exchange can open the door to your next investment. Understand the steps, the deadlines, and the decisions ahead.

Section 1031 allows an eligible owner to exchange qualifying business or investment real estate for other qualifying real estate while deferring recognition of gain. It is a process with firm timing and documentation requirements.

What is a 1031 exchange?

REAL ESTATE

Property that qualifies

Both the property sold and the replacement property generally must be held for investment or used in a trade or business.

TIMING

Deadlines matter

Replacement property is generally identified within 45 days and received within 180 days, subject to the tax return deadline rule.

STRUCTURE

Plan before closing

In a deferred exchange, a qualified intermediary can help structure the transaction so the owner does not receive the sale proceeds directly.

THE PATH AHEAD

From sale to next property

Every transaction is different. This is the broad sequence for a typical delayed exchange.

Identify

After the relinquished property transfers, identify potential replacement property in writing within the applicable 45-day window.

Prepare

Discuss your sale and intended purchase with your tax and legal advisors, and arrange the exchange before your sale closes.

Acquire

Complete the purchase within the applicable exchange period, generally 180 days or an earlier tax return deadline.

The 45-day and 180-day periods generally run concurrently. Extensions and identification rules require individual review.

EXCHANGE OPTIONS

Different paths for different transactions.

The structure depends on the order of your sale and purchase, your property goals, and the facts of your transaction.

Delayed exchange

Sell an investment or business property, then acquire qualifying replacement real estate within the exchange period.

Reverse exchange

Acquire the replacement property before disposing of the existing property. These transactions require additional planning and a specialized structure.

Improvement exchange

Use an exchange structure that may allow improvements to replacement property before you receive it. Timing and title arrangements are key.

Clarity before the clock starts.

The strongest exchange starts with a clear plan. Know which property you are selling, what you might acquire, and who needs to be involved before closing day.

The essentials, answered.

Can I exchange my primary residence?

Generally, no. Section 1031 applies to real property held for investment or productive use in a trade or business, rather than a personal home.

When does the 45-day period begin?

It generally begins when you transfer the property you are giving up, not when you find a replacement property.

Do the 45 and 180 days run one after the other?

No. They generally begin on the same transfer date. The exchange must also be completed by the applicable tax return due date, including extensions, if that date comes sooner.

ASK 1031 Exchange

45 / 180-day exchange calculator

Enter the closing date for the sale of your relinquished property to calculate the standard 45-day identification date and 180-day exchange date.

Your dates will appear here after you calculate.

Calendar days are counted starting after the sale closing date. These dates do not account for an earlier tax-return due date, including extensions, or applicable disaster relief. Your exchange generally must be completed by the earlier of the 180-day date or the due date of your federal tax return for the year of the sale, including extensions. Confirm your deadlines with your qualified intermediary and tax advisor. IRS guidance.

ASK 1031 EXCHANGE

Ready to talk through your next exchange?

Bring your expected closing date, property details, and questions. A conversation before the sale is the right place to begin.

Let’s begin the conversation.

Not sure where to start? We’re here to help.Reach out with any questions, or if you're ready to dive right in, schedule a consultation today.

Move forward.Keep more in motion.