Educational Tax Strategy 8h 40m 2025-09-18

Can You Do a 1031 Exchange On An Investment Property

JB
Jeremiah Boucher Founder, Patriot Holdings • Author of Finding Your Edge
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Key Takeaways

  • A 1031 exchange lets you defer capital gains by reinvesting proceeds into like-kind property within 180 days.
  • You must identify replacement properties within 45 days — have your targets lined up before you close the sale.
  • The exchange must go through a qualified intermediary — you can never touch the proceeds or the exchange is blown.
  • Like-kind is broader than most people think — you can exchange a single-family rental into a commercial building or vice versa.
  • Consider exchanging into a Delaware Statutory Trust (DST) or fund if you want to defer taxes without active management.