1031 Exchange Basics: How to Defer Tax When You Sell

If you’re selling an investment property, a 1031 Exchange allows you to reinvest proceeds into another property without paying capital gains tax immediately.

Requirements:

• Reinvest in a like-kind property within 180 days.

• Identify potential replacement properties within 45 days.

• Use a qualified intermediary — you can’t touch the funds.

Who Benefits:

• Owners looking to upgrade or diversify.

• Those not ready to cash out but want to grow equity tax-deferred.

💡 Key Takeaway: A properly structured 1031 exchange lets your money keep working for you — instead of going to the IRS.

⚠️ This blog is for informational purposes only and does not constitute tax, legal, or accounting advice. Please consult your CPA for guidance specific to your situation.