GUIDE
1031 exchange basics
General information on like-kind exchanges of real property, from the IRS description of section 1031.
What the IRS says it is
The IRS explains that section 1031 of the Internal Revenue Code lets you postpone gain or loss on the exchange of property held for productive use in a trade or business, or for investment, when it is exchanged for like-kind property. The IRS states that real property is generally like-kind to other real property, whether improved or unimproved. A primary residence is a different set of rules.
The IRS also describes timing. In a deferred exchange, you generally have 45 days from the transfer of the relinquished property to identify replacement property, and 180 days to complete the exchange (or until the due date of the return, including extensions, if earlier). Those periods are the IRS description. They are not a calendar we administer.
What this page will not do
We do not act as a qualified intermediary, do not hold exchange funds, and do not tell you that a particular building qualifies. A tax adviser applies section 1031 to your facts.
If a sale is one option you are exploring, the property form is still the place to describe the building and your goal. An exchange is a structure a tax adviser would apply. It is not a reason to skip the town, the size, and the value range.