Sell one investment property, buy another, postpone the tax
A 1031 exchange lets you sell an investment property and roll the money into a new one without paying tax on your profit right away. Fill in the numbers below to see how much tax you could postpone — and the deadlines you have to hit.
Need just the dates? Use the standalone deadline calculator.
It's an IRS rule that lets you sell an investment property and buy another one without paying tax on your profit right away. The tax isn't erased — it's postponed until you eventually sell without exchanging.
No. It only works for property held for investment or business use — rentals, land, commercial buildings. Your primary residence doesn't qualify, though a different rule (Section 121) gives homeowners their own tax break.
No, and this is the rule that trips people up most. The money must be held by a neutral third party called a qualified intermediary. If it lands in your bank account, even for a day, the tax break is lost.
The deadlines are firm: 45 days to name your new property in writing and 180 days to finish buying it, both counted from the day your sale closes. Miss either one and you owe the tax as a regular sale.