1031 exchange support
A 1031 exchange can let you sell an investment property and reinvest without paying tax on the gain right away. I help you find and secure the replacement property inside the deadlines.
1031 exchange support
When you sell an investment property at a profit, tax is normally due on the gain. A 1031 exchange, named after a section of the tax code, lets you defer that tax if you reinvest the proceeds in other investment real estate under specific rules.
Used well, an exchange lets you move your full equity into a larger or better property instead of paying part of it in tax. Many investors use exchanges to move from rental houses to commercial property, or from properties that need constant attention to ones that need very little.
The rules are strict and the deadlines cannot be extended. My role is the real estate: planning the timing with you, finding suitable replacement property early, and structuring contracts that fit the exchange. I work alongside your qualified intermediary and your CPA, who handle the exchange itself and the tax advice.
Who I help
Owners selling investment property
You are selling a rental or commercial property with a significant gain. I help you plan the sale and the next purchase as one transaction.
Investors trading up
You want to move from residential rentals into commercial, land, or multifamily. I identify options that match your budget and goals.
Owners wanting less work
You are tired of repairs and tenant calls. I show you property types, such as net lease investments, that need far less management.
On your side at every step
Plan the timeline
We map out the sale and purchase before your property is listed.
Coordinate with your advisors
I work with your qualified intermediary and CPA from the start.
Search early
I begin identifying replacement properties before your sale closes.
Structure the contracts
Both contracts include language allowing for the exchange.
Protect the deadlines
I negotiate closing dates and backup options with the 45 and 180 day limits in mind.
How it works, step by step
Plan before you sell
before listingYou speak with your CPA about whether an exchange suits you. We discuss what you want to buy next.
Engage a qualified intermediary
before closingThis independent company must be in place before your sale closes. It prepares the exchange documents and holds the proceeds.
Close the sale
Day 0The proceeds go directly to the intermediary. Both deadlines start on this day.
Identify replacement property
by Day 45You name the properties you may buy in a signed, written notice to the intermediary.
Close the purchase
by Day 180You must close on one or more of the identified properties. The intermediary sends the funds to the title company.
The two deadlines on a calendar
Your sale closes on March 1:
April 15 (Day 45): the last day to identify replacement properties in writing.
August 28 (Day 180): the last day to close on the replacement property.
Takeaway: Forty-five days pass quickly. Investors who start looking only after their sale closes often run out of time or settle for a property they do not really want.
Illustration only. The 180-day deadline can be shorter if your tax return is due sooner. Confirm your dates with your CPA.
What to budget for
The terms that matter
Qualified intermediary
You cannot receive or control the sale proceeds at any point. An independent intermediary must hold them, and it must be engaged before your sale closes.
Like-kind property
Both properties must be real estate held for investment or business use. A rental house can be exchanged for land, a retail building, or an apartment property.
The 45-day rule
You have 45 days from your sale to identify replacement properties in writing. The usual approach is to name up to three.
The 180-day rule
You must close on the replacement property within 180 days of your sale. Neither deadline is extended for weekends or holidays.
Equal or greater value
To defer all of the tax, you generally need to buy property worth at least as much as the one you sold and reinvest all of the proceeds.
Boot
Any cash you take out, or debt you pay off and do not replace, is called boot and is generally taxable.
Same owner
The same taxpayer who sold the old property must buy the new one.
What qualifies
Does not qualify: your own home, property bought to resell quickly, or shares in a company
Have these ready
- A conversation with your CPA about the tax effect
- A qualified intermediary chosen before you list
- A clear idea of what you want to buy
- Your budget, including any new financing
- A lender ready to move quickly
- Backup choices in case your first option falls through
What to avoid
- — Contacting the intermediary after the sale has closed.
- — Starting the search for replacement property after closing.
- — Naming properties you are unlikely to be able to buy.
- — Receiving the sale proceeds yourself, even briefly.
- — Buying a less expensive property without understanding the tax on the difference.
- — Changing the name the property is held in midway.
Frequently asked
An owner's perspective on every deal
Financial training
A bachelor's degree in finance and marketing from the University of Houston and an MBA from Texas Woman's University.
Corporate experience
More than a decade in corporate roles before real estate.
Proven volume
165+ closed sales and leases across Greater Houston.
Multilingual
Negotiations and guidance in English, Hindi, and Urdu.
Tell me what you need
This page is general education, not legal, tax, or financial advice.