1031 Exchange
A qualifying exchange of eligible real property that may postpone recognition of gain by carrying basis into like-kind replacement real property.
Strategies
Why 1031 Exchange matters
A qualifying 1031 exchange may postpone recognition of gain by carrying basis into eligible replacement real property. It does not erase tax. Identification is generally due within 45 days, and receipt is generally due by the earlier of day 180 or the applicable return due date, subject to detailed rules and limited relief.
How to check 1031 Exchange before you rely on it
Line up the qualified intermediary before you close the sale; once you receive the proceeds, the exchange is off. Confirm the identification deadline and the closing deadline on a calendar with your tax professional and the intermediary, and get the replacement-property rules in writing for your situation. Underwrite the replacement property on its own merits first; deferring a tax bill is not a reason to buy a weak deal, and the deferred gain follows you into the next property.
Related terms
- Illustrative Tax Effect
- An educational scenario that applies an assumed marginal rate to modeled taxable rental income or lo…
- Selling Cost %
- An editable sale-cost assumption that can include brokerage compensation, transfer taxes, title or l…
- Appreciation Rate
- Your editable assumption for annual property-value change.
Where 1031 Exchange shows up in TrueCap
A strategy sets which inputs the analyzer asks for and which outputs lead the results view. The core buy-and-hold flow is what every free analysis runs; specialist flows reuse the same engine and the same labeled assumptions, so a number that appears in two strategies was computed the same way in both.