Selling a property?
Plan the exchange first.
When you sell investment real estate and reinvest the proceeds, a 1031 exchange can defer the capital gains tax. The deadlines are fixed and begin the day you close, so the time to look at your options is before the sale, not after.
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Someone from our team will be in touch within one business day. Would you rather talk now? Call 760-594-0714.
1031 deadline & tax-deferral estimate
Enter your closing date and your 45-day and 180-day deadlines appear right away. Add a few figures to see a rough estimate of the tax an exchange could defer.
Your rough estimate
Tax a 1031 exchange could defer, based on these figures.
| Estimated gainSale price minus (purchase + improvements − depreciation) | |
| Depreciation recapture at 25% | |
| Federal capital gains at | |
| Net investment income tax at 3.8%On the whole gain | |
| State at On the whole gain |
A rough estimate for education only, not tax advice; please consult your CPA. It applies the rates shown to your whole gain and assumes a full exchange, with all proceeds reinvested, debt replaced and no other income effects. A 1031 exchange defers tax; it does not eliminate it. Your actual figures depend on your circumstances.
Call 760-594-0714 to go over it →We'll also be in touch about your dates within one business day.
Where exchanges go wrong
The rules are well established. Most problems come down to timing.
Day one is your closing day
From the day you close you have 45 calendar days, weekends and holidays included, to name replacement property in writing. Many owners begin the search too late.
You can't receive the proceeds
The sale money must go to a qualified intermediary rather than to you. If the exchange isn't arranged before closing, it can't be put right afterwards.
Debt counts as well as cash
If your property had a mortgage, you generally need to replace that debt as well as reinvest your equity. Any shortfall can be taxed.
What we'll cover together
A straightforward conversation about your sale, in plain English.
Your timeline
When your 45-day and 180-day deadlines would fall, and what needs to be in place before you close.
Replacing debt
About how much debt you would need to replace, and the kinds of replacement property that can account for it.
Passive replacement options
How Delaware Statutory Trusts work: fractional interests in professionally managed property, so you can defer the tax without tenants and repairs. Every investment carries risk; see the disclosures below.
Questions for your advisers
What to raise with your CPA and attorney, so your time with them goes on decisions rather than the basics.
How it works
Tell us about your sale
Two short questions and how to reach you. Approximate answers are fine.
Talk it through
A conversation with our team about your timeline, debt and the options available.
Decide with your advisers
If an option suits you, a registered representative goes over it with you and the offering documents. There's no obligation.
Frequently asked questions
What property qualifies as "like-kind"?
For real estate the definition is broad: most property held for investment or for use in a business can be exchanged for other real property held the same way. A rental home can become an apartment building, land or commercial property. Your personal residence, and property held mainly for resale, don't qualify.
Must I reinvest all of the proceeds?
To defer the full gain you generally need to reinvest all of the net proceeds and replace any debt that was paid off at the sale. Cash you keep, known as "boot", is usually taxable.
My property is already listed or under contract. Is it too late?
Not necessarily. What matters is arranging the exchange with a qualified intermediary before the sale closes. If you're already under contract, it's worth talking it through soon.
What is a Delaware Statutory Trust (DST)?
A DST is a trust that holds investment real estate, such as multifamily, industrial, retail or self-storage property, and lets several investors own fractional interests in it. Interests in a properly structured DST can qualify as like-kind replacement property. DSTs are illiquid securities offered by private placement, typically to accredited investors, and carry risks including loss of value. Offers are made only through the offering documents.
What if my 45 days have already started?
Then naming your replacement property comes first. Some professionally managed options can be identified and closed relatively quickly because the property has already been acquired. A short call can help you see what's realistic in the time remaining.
Is there a charge for the call?
No, and you're under no obligation to go further. We don't give tax or legal advice; we help you understand the process and your choices so you can decide with your own advisers.
Understand your options before you sell
Two short questions and your contact details. We'll go over your timeline and the choices open to you.
Request my options review →