Guide
1031 Exchange Readiness Checklist
Gather transaction details, advisor contacts, closing timelines, loan requirements, and replacement property criteria before opening your exchange file.
Request the ChecklistInvestor Resources
Prepare for your exchange before the clock starts.
Use these guides to start a more productive conversation with your exchange team, CPA, attorney, broker, and closing officer.
Strategy
Replacement Property Planning
Evaluate geography, debt requirements, income goals, closing certainty, and contingency planning before your identification deadline arrives.
Explore ServicesAdvisor Note
When to Involve Your CPA and Attorney
Early coordination helps align transaction structure, entity ownership, gain calculations, financing, estate planning, and documentation.
Read FAQReference
Understanding Boot in a 1031 Exchange
Boot is any value received that isn't like-kind property. Understanding what creates boot — and how to minimize it — is essential to maximizing your tax deferral.
Review Common QuestionsStrategy
Reverse Exchange Planning Guide
A reverse exchange lets you secure replacement property before the relinquished sale. Advance planning for structure, timing, and financing is critical.
Explore Reverse ExchangesExplainer
Working With a Qualified Intermediary
Your QI holds exchange proceeds, prepares documentation, and coordinates with closing teams. Understanding what to expect sets the right foundation.
Start Your ExchangeKey Timeline
Two deadlines shape most delayed exchanges.
Sale Closing
Exchange begins
The relinquished property closes and exchange proceeds are routed through the qualified intermediary process.
Day 45
Identification deadline
Replacement property identification is typically due within 45 days of the relinquished property transfer.
Day 180
Exchange period
The replacement property acquisition is typically completed within 180 days, subject to applicable rules and tax return timing.
Core Exchange Rules
Six rules that govern every 1031 exchange.
A valid exchange requires strict adherence to IRS guidelines. These fundamentals apply to most standard delayed exchanges.
Like-Kind Property Standard
Real estate for real estate. Almost all U.S. investment and business real property qualifies, regardless of property type or geographic location.
45-Day Identification Deadline
Replacement properties must be formally identified in writing within 45 calendar days of the relinquished property closing. No extensions apply.
180-Day Exchange Period
Replacement property must be acquired within 180 days of the relinquished closing, or by the federal tax return due date — whichever is earlier.
Equal or Greater Value
To defer 100% of capital gains, the replacement property must be of equal or greater value and all net equity must be reinvested.
Qualified Intermediary Required
Exchange proceeds must be held by an independent QI. Direct receipt of funds by the taxpayer — even briefly — permanently disqualifies the exchange.
Investment or Business Use Only
Property must be held for investment or business use. Primary residences and property held for immediate resale do not qualify.
Common Mistakes
What derails most exchanges.
Awareness is the first step. Most exchange failures are preventable with the right preparation and a qualified intermediary engaged early.
01
Engaging a QI after closing
The QI assignment must be in place before the relinquished property closes. Once funds transfer without a QI, the exchange is permanently disqualified.
02
Missing the 45-day window
There are no exceptions to the identification deadline. A missed window terminates the exchange and triggers full capital gains recognition.
03
Taking constructive receipt
Any control over exchange funds — even temporarily — creates a taxable event. Proceeds must flow directly from the closing agent to the QI.
04
Identifying too few properties
Identifying only one replacement property creates significant risk if that acquisition falls through. Most investors should identify two to three alternatives.
05
Overlooking boot exposure
Receiving cash, failing to replace debt, or acquiring lesser-value property creates taxable boot — even within an otherwise valid exchange.
06
Tight acquisition timelines
The 180-day deadline is firm. Build buffer into replacement property timelines to account for title delays, financing, and lender requirements.
Residential Exchanges
Investment property. Personal vision. Tax discipline.
From single-family investment properties to multi-unit residential holdings, a well-structured 1031 exchange lets you reposition without sacrificing the equity you have built.
Discuss Your ExchangeGlossary
Key terms every exchanger should know.
- Boot
- Cash or non-like-kind property received during an exchange. Boot is taxable and reduces the total amount of gain that can be deferred.
- Relinquished Property
- The investment or business property being sold in the exchange. Also referred to as the "down-leg" or "old property."
- Replacement Property
- The new investment property being acquired. Also referred to as the "up-leg" or "new property."
- Identification Period
- The 45-calendar-day window following the relinquished property closing in which potential replacement properties must be formally designated in writing.
- Exchange Period
- The 180-calendar-day window following the relinquished property closing in which the replacement property must be acquired.
- Qualified Intermediary (QI)
- An independent third party that holds exchange proceeds, prepares documentation, and facilitates the transfer. Also called an accommodator.
- Like-Kind Property
- A broad legal classification covering most U.S. real property held for investment or business use. Almost any real property can be exchanged for any other.
- Reverse Exchange
- A structure where replacement property is acquired before the relinquished property is sold. Requires an Exchange Accommodation Titleholder (EAT).
Official References
Verify rules with current IRS guidance and your advisors.
This site provides educational information only and is not legal, tax, or investment advice.
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