Complete Guide
1031 Exchange Guide
How to defer capital gains taxes on investment property sales — with an interactive deadline tracker.
What Is a 1031 Exchange?
A 1031 exchange (named after Section 1031 of the Internal Revenue Code) allows real estate investors to defer capital gains taxes when they sell an investment property — as long as they reinvest the proceeds into a “like-kind” replacement property within strict time limits.
The tax savings can be substantial. On a $500K gain, you could defer $75,000–$115,000 in federal taxes, allowing you to redeploy that capital into a larger asset. Over multiple exchanges, investors can compound wealth tax-deferred for decades — a strategy sometimes called “swap till you drop.”
The critical rules: proceeds must go through a Qualified Intermediary, you have 45 days to identify replacement properties, and 180 days to close. Missing either deadline forfeits the exchange.
Deadline Tracker
Enter your sale closing date to calculate your critical deadlines.
45-Day Identification Deadline
May 24, 2026
45 days remaining
180-Day Closing Deadline
October 6, 2026
180 days remaining
Note: If your tax filing deadline falls before Day 180, that earlier date controls. Consult your CPA.
Exchange Timeline
Day 0
Relinquished Property Closes
Your sale closes. Proceeds MUST go directly to a Qualified Intermediary (QI) — not to you. Receiving the funds yourself disqualifies the exchange.
Days 1–45
45-Day Identification Window
You have exactly 45 days to identify up to 3 replacement properties in writing to your QI. Miss this deadline and your exchange fails — no extensions.
Day 45
Identification Deadline
Submit your written identification of replacement properties to your QI before midnight. Most advisors recommend identifying 2–3 backup options.
Days 46–180
180-Day Exchange Window
You must close on your replacement property within 180 days of selling the relinquished property (or your tax filing deadline, whichever is earlier).
Day 180
Exchange Completion Deadline
Final deadline to close on your replacement property. Funds are released from your QI to the title company at closing.
Tax Filing
File Form 8824
Report your 1031 exchange to the IRS using Form 8824 (Like-Kind Exchanges). Your tax advisor will carry forward your adjusted basis into the new property.
Identifying replacement properties in Nashville? Let's talk.
Talk to GharibFrequently Asked Questions
Planning a 1031 in Nashville?
Gharib specializes in 1031 exchanges and has helped investors acquire replacement properties across Nashville and Middle Tennessee.
615.719.4242 · gharib@gharibhaji.com
This guide is for informational purposes only and does not constitute tax or legal advice. Always consult a qualified CPA and attorney before executing a 1031 exchange.