Your investment property finds its next owner.
A sale can be the start of your next investment.
Change properties.
Keep your capital
moving.
Selling investment real estate? A properly structured 1031 exchange may let you defer eligible gain and reinvest in your next qualifying property.
Explore my 1031 options ↗You’ll continue to an external exchange inquiry form. IIRG may receive referral compensation. Start planning before your sale closes.
Your current investment
⟶
Your next opportunity
REINVEST WITH A PLAN ✦
Concept illustration. No return or tax outcome is guaranteed.
Potential tax deferral
Flexible property strategy
Plan before closing
THE IDEA IN 10 SECONDS
Sell. Exchange. Keep investing.
A deferred 1031 exchange lets eligible owners sell investment or business real estate, then buy qualifying replacement real estate while postponing tax on eligible gain.
A qualified intermediary holds proceeds under the exchange agreement.
Acquire qualifying replacement property within the deadlines.
“Deferred” means the sale and replacement purchase close at different times. Arrange the exchange before your sale; do not take control of the proceeds.
WHY CONSIDER IT?
Give your next investment more room.
Potential tax deferral can keep capital available for another property, a new location, or a different investment mix.
Taxable sale
Qualifying exchange
Concept only · not a tax calculation
A simple example: sale price is not the same as gain
Imagine a property sells for $500,000 with a $300,000 adjusted tax basis. Ignoring selling costs and other adjustments, the gain is $200,000. A properly structured exchange may defer eligible gain when the requirements are met. The $200,000 is not a tax bill or extra cash. Actual proceeds, debt, depreciation, costs, and taxes require individual calculations.
What needs to happen for full deferral?
Generally, reinvest all net exchange proceeds and acquire sufficient replacement property value; replacing debt or adding cash may also be needed. Cash retained, nonqualifying property, or net debt relief can create taxable gain. Your intermediary and tax adviser should calculate the requirements for your transaction. Report the exchange on IRS Form 8824.
When might an exchange be the wrong fit?
If you need to cash out, cannot find a suitable replacement, or fees and timing outweigh the benefit, a taxable sale may be preferable. Deferral does not guarantee better returns or remove investment risk. Compare both paths with your independent tax adviser before committing.
Why investors consider an exchange
Your next chapter.
With more options on the table.
Keep more capital available to reinvest.
Deferring eligible gain may preserve funds that would otherwise go toward current federal tax on that gain. Tax is generally deferred, not erased.
Reshape your property strategy.
Consider a different qualifying property type, location, or investment mix as your goals change. “Like-kind” generally concerns the nature of real property, not identical buildings.
Align ownership with your next goal.
Explore consolidating properties or acquiring multiple qualifying replacements, subject to identification rules. Evaluate management demands, costs, and risk before choosing.
The clock matters
Two deadlines.
One coordinated plan.
Before
Prepare before the sale.
Coordinate your tax adviser, closing team, and qualified intermediary before transferring the property. Receiving or controlling sale proceeds can disqualify an exchange.
45 days
Identify replacements.
Generally, identify qualifying replacement property in writing within 45 days after transferring the relinquished property. Identification limits apply.
180 days*
Complete the exchange.
Generally, receive replacement property within 180 days after the transfer, or your federal return’s due date including extensions, whichever comes first.
*The 45- and 180-day periods run concurrently; they are not added together. Special relief may apply in limited circumstances.
Could it fit your situation?
Investment property.
Investment purpose.
- You hold real estate for investment or productive use in a trade or business.
- You plan to acquire qualifying real estate for investment or business use.
- You can meet the identification, completion, and exchange-structure requirements.
- You’re ready to coordinate the transaction before closing.
Know what may not qualify.
A property used solely as your personal residence does not qualify. Property held primarily for sale, such as dealer inventory, is excluded. Mixed-use and vacation properties need individual review.
Know what may still be taxable.
Cash, non-like-kind property, or net debt relief can create taxable gain. Full deferral depends on your facts and transaction structure. State treatment and other tax consequences may differ.
Clear answers before your next move
Less guesswork.
A better starting point.
Discuss my exchange plans ↗
External inquiry form · IIRG may receive referral compensation.
Does a 1031 exchange eliminate my taxes?
Generally, it defers recognition of qualifying gain. Your tax basis typically carries into replacement property with adjustments, which can affect a later sale. Your tax adviser should evaluate the complete tax picture.
Do I have to buy the exact same kind of building?
No. Different types of qualifying U.S. real estate can generally be like-kind. Both properties must meet the investment or business-use requirements. U.S. real property is not like-kind to real property outside the U.S.
Can I close my sale first and arrange the exchange later?
Plan before closing. Taking actual or constructive receipt of proceeds can prevent deferral. A qualified intermediary is a common safe-harbor structure, and exchange documents need to be coordinated in advance.
What does IIRG do?
This page introduces the strategy and connects you to an external exchange inquiry process. IIRG is not acting as your qualified intermediary, tax adviser, or legal adviser through this page.
What happens when I click a button?
You’ll leave IIRG’s website for an external inquiry form. Review that provider’s identity, terms, fees, privacy practices, and services before submitting information or engaging them.
Make the next move intentional.
Before you sell,
explore what comes next.
Start a conversation about your property, timing, and exchange options.
Start my 1031 inquiry ↗External inquiry form · IIRG may receive referral compensation.
No eligibility, tax savings, replacement property, or investment outcome is guaranteed.
