1031 Exchange (Like-Kind Exchange)

Sell one investment property and buy another to defer all capital gains taxes.

Definition

A 1031 exchange lets you sell a property, reinvest ALL proceeds into a new property, and defer capital gains tax and depreciation recapture indefinitely. Rules: 45-day identification period (name replacement properties), 180-day closing period, must use a qualified intermediary, replacement must be equal or greater value, and must be like-kind (investment for investment — not personal).

How Kaison Uses This

1031 timelines are tracked in the Tax Center. Kaison shows the 45-day and 180-day deadlines from your exchange start date.

Related Terms

Depreciation Recapture

When you sell, the IRS taxes back the depreciation you claimed — at 25%.

Educational content only. Consult a CPA or attorney for advice specific to your situation.