Move investment property with a clear 1031 plan
A 1031 exchange may defer federal gain when qualifying investment or business real property is exchanged for other qualifying real property. It is not for a primary home.
What a 1031 exchange can cover
Section 1031 generally applies to real property held for investment or business use. It does not apply to a home held for personal use or property held mainly for sale. A rental or other business property may qualify, but your own facts matter.
Plan before you sell
In a deferred exchange, replacement property must be identified within 45 days of the sale. You must receive it within 180 days, or by the due date of your tax return, if earlier. A qualified intermediary needs to be part of the plan before closing.
How I help
I help you plan the real estate side: selling strategy, replacement-property search, and timing with your closing team. Your qualified intermediary, CPA, and attorney determine exchange treatment and handle their professional roles.
Educational examples only, not tax, legal, accounting, or investment advice. Eligibility, participation, timing, basis, depreciation, and filing are determined by your CPA and advisors. Results vary; tax savings and returns are never guaranteed.
This is not tax or legal advice. Aditya Kasturi is a licensed real estate broker, not a CPA, attorney, or financial advisor. Figures are illustrative, based on Washington and federal law as understood at the time of writing, and laws change. Confirm any strategy on this page with your CPA and, where relevant, your estate planning attorney before acting.
Common questions
Clear answers first. If one question changes the deal, bring it into the review before you move money.
Q1Does this work for my primary home?+
No. Primary residences use the federal Section 121 exclusion instead: $250K single, $500K married, when the ownership and use tests are met.
Q2Can I exchange a short-term rental into a long-term rental?+
Generally yes, provided both are held for investment. The intent rules have nuance; your CPA confirms your facts before we structure it.
Q3What about reverse exchanges?+
Buying the replacement before selling is possible and more expensive to structure. In a thin-inventory market it is sometimes worth it. We price both paths before choosing.
Start with your numbers
Tell me where you are in the decision and I'll come back with real figures, not a pitch.
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