1031 Exchange ≠ Tax-Free Forever

Neerja Kwatra
Sep 8
1 min read

Updated: Sep 19

A 1031 exchange lets investors defer capital gains by reinvesting in like-kind property — but it’s not permanent.

Strict rules apply:

Identify replacement property within 45 days
Close within 180 days
Reinvest in property of equal or greater value

✅ Many investors “swap until they drop,” rolling gains into new properties for decades. Heirs benefit from a step-up in basis, erasing deferred taxes. ⚠️ Miss the deadlines or reinvest incorrectly, and you’ll face the full tax bill immediately.

👉 Action: Work with a qualified intermediary and CPA before listing property to plan your replacement strategy.

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