top of page
Search
  • AustinTaxCPAs

Things To Know: Like-Kind Exchanges (§1031 Exchange)



A sale + reinvestment does not qualify

You need to exchange one property for another property. This is generally done through a third-party intermediary.


You cannot execute a like-kind exchange you sell your property and receive the funds so be sure you have your third-party intermediary set up before you close on the property you are selling.


Do not do a like-kind exchange if you are going to realize a loss on the relinquished property

You would be better off recognizing the loss, receiving the funds, and purchasing the new property.



What property is eligible?

Complicated answer but only real estate.*


*"Real property" is a term of art and IRS has issued many pages defining what does and doesn't qualify, but generally speaking, only real estate & land qualify for deferred gain treatment.


Furniture, fixtures, and equipment do not qualify.


Property must be used for business or investment purposes.


Personal use property does not qualify (e.g. main home)


Time Limits

There are two deadlines in a like-kind exchange:

  • You must identify the new property within 45 days

  • You must close on the property within 180 days

Recent Posts

See All

Q: Is this retainer payment in addition to my tax preparation bill? No, we will apply this retainer payment to your final tax preparation bill. We will bill the remaining balance, if any, at the compl

We have two starting points- $400 per month for monthly accounting, or $250 per month for bi-monthly accounting. Both starting points assume two bank accounts (such as one checking and one credit card

bottom of page