The basics
Under Section 1031 of the Internal Revenue Code, an investor who sells property held for investment or business use can defer capital gains tax by reinvesting in like-kind real property, if the exchange follows the rules. Proceeds are typically held by a qualified intermediary rather than paid to the seller.
The two deadlines
- 45 days to identify. From the day the relinquished property transfers, you generally have 45 calendar days to identify replacement property in writing.
- 180 days to close. The replacement purchase generally must close within 180 calendar days of the sale, or by the due date of your tax return for that year, including extensions, if that comes first.
Where we help
We start the search early, pressure-test candidate properties against your objectives, help you build a realistic identification list, and negotiate the purchase so it can close inside the window.
This page is general information, not tax or legal advice. Rules have exceptions and details that matter; consult a qualified intermediary and your tax advisor before you sell.
Draft pending brokerage review. Last updated 2026-10-08. General information, not legal, tax or lending advice.