Lesson · Real-estate tax

Sold a rental?
You might not owe the tax yet.

The 1031 exchange lets you defer the capital-gains tax when you reinvest — if you hit two deadlines. Here's exactly how, in 60 seconds.

$37,600

Tax deferred on a $200,000 gain at 18.8%

45 / 180

Days to identify, then close — the two clocks

100%

Of the gain deferrable when the rules are met

The strategy

Three moves you cannot miss

A 1031 exchange isn't automatic — miss a deadline and the whole deferral collapses. These are the non-negotiables.

Hire a Qualified Intermediary before closingTouch the proceeds yourself and the exchange is dead. The QI holds the funds.

Identify replacement property within 45 daysIn writing, to your QI. The clock starts the day your sale closes.

Close on it within 180 daysBoth windows run at the same time. No extensions.

Free download

The strategy, the checklist, the worked number, and links to the actual tax code. Print it, take it to your CPA. Free, no strings.

Field guide · PDF

Cliff notes + checklist + primary-source law

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The law behind it

Verify against the source before you rely on it. This is education, not legal or tax advice.

26 U.S.C. § 1031 — Exchange of real property held for productive use or investmentlaw.cornell.edu/uscode/text/26/1031

26 U.S.C. § 1031(a)(3) — The 45-day identification and 180-day exchange windowslaw.cornell.edu/uscode/text/26/1031

26 CFR § 1.1031(k)-1 — Deferred exchange rules (qualified intermediary, identification, timing)law.cornell.edu/cfr/text/26/1.1031(k)-1

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