Investor Tools
How the 1031 clock works
A 1031 exchange lets you sell an investment property and defer the capital gains tax by buying another one. The IRS gives you two hard deadlines, and both start the day your sale closes. By day 45 you have to name your replacement properties in writing to your qualified intermediary. By day 180 you have to close on one or more of them.
These deadlines don't move. Weekends and holidays count, and missing either one ends the exchange. That's why most investors start looking for a replacement before their sale closes.
What counts as a full exchange
To defer all of the tax, the property you buy should cost at least as much as your net sale price, you should reinvest all of your cash proceeds, and you should carry at least as much debt as you paid off, or add cash to make up the difference. Anything you keep or don't replace can be taxed.
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