1031 Exchange Rules & Deadlines
Understanding the rules and deadlines is critical for a successful 1031 exchange. Download our handbook and use our calculator to track your critical dates.
1031 Exchange Handbook
Our comprehensive guide covers everything you need to know about 1031 exchanges—rules, deadlines, property types, common mistakes, and step-by-step instructions.
Calculate Your Deadlines
Enter your sale closing date to instantly calculate your 45-day identification deadline and 180-day exchange completion deadline. These dates are critical— missing them will disqualify your exchange.
1031 Exchange Deadline Calculator
Calculate your critical 45-day and 180-day deadlines
A Typical Exchange Timeline
Sign PSA with exchange language, contact us, close sale, funds transferred to exchange account.
Identify replacement properties in writing using Three Property Rule or 200% Rule.
Sign PSA as buyer, we wire funds to escrow, close by Day 180.
Key Exchange Rules
These are the fundamental rules that govern 1031 exchanges. Violating any of them can disqualify your exchange and result in immediate tax liability.
Like-Kind Property
Both the relinquished and replacement properties must be held for investment or business use. "Like-kind" refers to the nature of the investment, not the type of property—you can exchange an apartment building for vacant land or a retail center.
Equal or Greater Value
To defer 100% of capital gains, the replacement property must be equal to or greater than the net sale price of the relinquished property, and you must reinvest all cash proceeds.
Same Taxpayer
The same taxpayer (or entity) that sells the relinquished property must acquire the replacement property. The name on both deeds must be identical.
Qualified Intermediary Required
You cannot touch the exchange funds at any point. A qualified intermediary must hold the proceeds and facilitate the transaction to maintain tax-deferred status.
No Related Parties
You generally cannot purchase replacement property from a related party (family members, controlled entities) unless they also complete a 1031 exchange.
Boot Is Taxable
"Boot" (cash or other property received that isn't like-kind) is taxable. This includes any reduction in mortgage or debt, cash received, or non-like-kind property.
Types of 1031 Exchanges
We facilitate all types of 1031 exchanges to meet your specific investment strategy.
Forward Exchange
The most common type of 1031 exchange. Sell your relinquished property first, then acquire replacement property within the required timeframes.
- Sell property, then buy replacement
- 45 days to identify replacement properties
- 180 days to complete the exchange
- Most straightforward exchange type
Reverse Exchange
Acquire your replacement property before selling your relinquished property. Ideal when you find the perfect property but haven't sold yet.
- Buy replacement property first
- Property "parked" with accommodation titleholder
- 45 days to identify property to sell
- 180 days to complete the exchange
Improvement Exchange
Use exchange funds to make improvements on the replacement property. Also known as a construction or build-to-suit exchange.
- Improve replacement property with exchange funds
- Improvements must be completed by day 180
- Receive "substantially the same" property identified
- Complex but powerful strategy
Important Reminder
The 180-day exchange period runs concurrently with the 45-day identification period— it does not start after. Both deadlines are measured from the same starting point (Day 0). These deadlines are absolute and cannot be extended except in cases of presidentially declared disasters affecting your area.
Ready to Start Your 1031 Exchange?
Contact us for a free consultation to discuss your specific situation and how we can help.