What is a 1031 exchange?
A Section 1031 exchange can defer gain when a taxpayer exchanges qualifying real property for like-kind real property. All applicable requirements must be met.
Read the 1031 Exchange Rules and Timelines page.
Which property can qualify?
The taxpayer must hold the real property for investment or productive use in a trade or business. Property held primarily for sale does not qualify.
Personal-use property needs separate tax review. United States and foreign real property are not like-kind to each other.
When must I contact a Qualified Intermediary?
Contact a Qualified Intermediary before the relinquished-property sale closes. The exchange agreement and funds structure must exist before the applicable transfer.
Read the Qualified Intermediary Services page.
Can I receive the sale proceeds?
Do not receive or control the sale proceeds. Actual or constructive receipt can cause the transaction to be a sale.
What is the 45-day identification period?
The period starts on the relinquished-property transfer date. The taxpayer must deliver a signed written identification no later than the end of the period.
Read the 45-Day Identification Deadline Help page.
What is the 180-day exchange period?
The exchange period also starts on the relinquished-property transfer date. It ends on day 180 or the federal return due date, whichever comes first.
Read the 180-Day Exchange Period Planning page.
Can I start before I find replacement property?
Yes. A delayed exchange can start before replacement-property selection. The written identification rules apply after the relinquished-property transfer.
Read the Selling Before Finding Replacement Property page.
Can I buy replacement property before I sell?
A reverse-exchange structure can apply to a purchase-first sequence. Request a review before the replacement-property purchase closes.
Read the Reverse 1031 Exchange page.
Can I use exchange funds for improvements?
An approved improvement structure can apply exchange funds to applicable work before property receipt. Title, funds, construction, and timing need early review.
Read the Improvement and Construction 1031 Exchange page.
Can a limited liability company complete a 1031 exchange?
A limited liability company can own qualifying real property. The tax advisor must confirm its federal tax classification and the taxpayer identity.
Read the Limited Liability Company or Partnership 1031 Exchange Planning page.
Can a partnership interest qualify?
No. An exchange of a partnership interest does not qualify as a like-kind exchange under the general federal rule.
What is boot?
Boot is an informal term for money or non-like-kind property that can cause recognized gain. Liabilities can also affect the calculation.
Read the Debt, Boot, and Replacement Value Planning page.
How are exchange funds protected?
Ask the Qualified Intermediary about the bank, account title, authorization, verification, insurance, records, and incident process. Get important answers in writing.
Read the Security of Exchange Funds page.
Can the exchange team give tax or legal advice?
The exchange team can explain its process and documents. The taxpayer's tax advisor and attorney must approve tax and legal conclusions.
What information helps the first review?
Give the property, contract, closing, title, escrow, entity, advisor, lender, funds, and deadline facts. Do not send sensitive data through an unapproved channel.
Read the Start a 1031 Exchange Checklist page.
What if my closing is close?
Call 888-747-1031. Give the next closing date and property sequence first.
Read the Closing Soon: Need a Qualified Intermediary page.
Get the correct answer route
Use the Scenario Hub when you are not sure which page applies. Use the contact page for a transaction review.
This page gives general information. It does not give tax, legal, accounting, investment, lending, title, insurance, or financial advice.