CalculateRealEstateROI

Tax

1031 Exchange Strategy

Tax-deferred reinvestment of investment property gains into like-kind replacement property.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

45/180 timeline

45 days to identify, 180 days to close — no extensions.

Qualified Intermediary

Required intermediary holds proceeds; seller cannot touch them.

Equal or greater debt

Replacement must match or exceed both value and debt of relinquished.

Examples

  • $500k sale on Jan 1 → identify by Feb 15 → close by Jun 30 on $600k apartment.

Practical applications

  • Portfolio consolidation.
  • Market rotation.

Common mistakes

  • Missing 45-day window.
  • Touching proceeds.
  • Replacement below threshold.