FAQs

6

What is a 1031 exchange in plain English?

1

It is a tax-deferral strategy that can allow an investor to exchange qualifying real property held for business or investment use for other qualifying real property, if the exchange follows the required rules and timing. (IRS)

When do the 45-day and 180-day deadlines begin?

2

The clock generally begins when the relinquished property transfers. Replacement property must generally be identified within 45 days and received within 180 days, or by the due date of the tax return including extensions, whichever is earlier. (IRS)

Should I wait until after closing to think about replacement options?

5

What happens after I click to view an opportunity?

Do I need a qualified intermediary?

3

In a delayed exchange, investors generally use a qualified intermediary because the exchange cannot involve actual or constructive receipt of the sale proceeds by the taxpayer. (IRS)

Can DST interests be part of a 1031 exchange?

4

IRS guidance addresses when an interest in a properly structured Delaware Statutory Trust may qualify for section 1031 treatment, assuming the exchange otherwise satisfies the rules. (IRS)

Usually no. The process is smoother when your shortlist, team coordination, and key questions are started early, before the 45-day window becomes a scramble. (IRS)

Public-facing content should stay preliminary. If a deeper review is appropriate, the next step goes through the 1776 process for additional information and eligibility steps.