1031 Exchange
Investment property resources
Considering a 1031 exchange?
Section 1031 may allow gain to be deferred when qualifying real property held for investment or business use is exchanged for like-kind real property. A personal-use home generally does not qualify. Deferral does not mean the tax liability disappears.
Timing and structure matter
In a typical deferred exchange, replacement property must be identified within 45 days, and acquired by the earlier of 180 days after the transfer or the applicable tax-return due date, including extensions. A qualified intermediary is commonly used to prevent actual or constructive receipt of sale proceeds.
Review pre-construction carefully
A reservation or deposit on a future condominium does not itself complete an exchange. Construction and closing dates may not fit the deadlines. Before signing or selling, have your tax adviser, attorney and qualified intermediary confirm the property’s intended use and the proposed transaction structure.
General information only; not tax or legal advice. Reviewed October 19, 2026. Sources: IRS real estate exchange guidance and Form 8824 instructions.