Investors
1031 exchanges: selling and reinvesting on a deadline.
A 1031 exchange can let investors defer capital gains tax when they sell investment or business real estate and buy like-kind property. The rules and deadlines are strict, so Charles helps clients plan the sale and the replacement purchase together, alongside their qualified intermediary and tax adviser.
May be a good fit if…
- You are selling a rental, multi-unit, or commercial property.
- You want to reinvest the proceeds into another investment property.
- You need to find replacement property within the exchange deadlines.
What to know
45 and 180 days
Replacement property generally must be identified within 45 days of the sale and acquired within 180 days.
Qualified intermediary
Sale proceeds are held by a qualified intermediary. Receiving the funds yourself can disqualify the exchange.
Plan both sides
Line up replacement options before you sell, so the identification deadline does not force a rushed choice.
Questions worth asking
- Which properties could I realistically buy within 45 days?
- Who will act as my qualified intermediary?
- What does my tax adviser say about my basis and any boot?
Frequently asked questions
What is a 1031 exchange?
A provision of the federal tax code that can let you defer capital gains tax when you sell investment or business real estate and buy like-kind real property within set deadlines.
Can I use a 1031 exchange on my primary home?
No. 1031 exchanges apply to property held for investment or business use, not a personal residence.
Does Charles give tax advice?
No. Charles handles the real estate side. Confirm the tax treatment of any exchange with a CPA or tax attorney.
Want advice for your situation?
Charles Nguyen, California Real Estate Broker, DRE #01846114, dba WestCoast Real Estate. Educational information only; not legal, tax, or financial advice. Timelines and results vary with the property and market. Contact: (714) 452-8165.