1031 / Like-Kind Exchange Timeline

It defers capital gains tax by rolling proceeds from one investment property into another like-kind one. The deferral can be large, letting you trade up without a tax hit now — but the rules and deadlines are strict and unforgiving.

From the sale's closing: 45 days to identify replacement property, and 180 days to close on it. Most failed exchanges die on the 45-day identification deadline, so candidates should be lined up before you sell.

Because you can't touch the sale proceeds — a QI must hold them for the exchange to qualify. Engage the QI before closing your sale; receiving the money yourself, even briefly, disqualifies the exchange.

No — a 1031 is for investment or business property, not your primary home (that's what the §121 exclusion covers). Confirm both properties are investment-use before planning the exchange.

Generally reinvest all the equity and replace the debt; cash taken out ("boot") is taxable. To fully defer, the replacement should be equal or greater in value with equal or greater debt — confirm the structure with your QI and CPA.

Engage a QI and identify candidates before you sell, since the clock starts at closing. Planning that timeline is part of a Real Estate Review.