1031 Exchange · Reinvest Tax-Deferred

Defer the tax.
Keep your equity working.

A 1031 Exchange lets you sell one investment property and reinvest in another while deferring the capital-gains tax — so your full equity keeps compounding instead of shrinking at the closing table.

Plan Your 1031 Exchange

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The Basics

What is a 1031 Exchange?

Named for Section 1031 of the Internal Revenue Code, a "like-kind exchange" lets you swap one investment property for another and defer the capital-gains tax and depreciation recapture you'd normally owe on a sale. You're not avoiding the tax — you're deferring it, keeping more equity invested and working for you.

For an owner who bought decades ago and has watched the building fully depreciate, that deferral can be the difference between reinvesting your whole equity or handing a large slice to the IRS.

The Timeline

Six steps, two clocks you can't miss

The whole exchange turns on two deadlines that start the day your sale closes. Miss either and the deferral is gone — which is why we plan before you list.

01
Strategy & Setup

Map your goals, run the numbers, and engage a Qualified Intermediary before you list. You can never take receipt of the proceeds yourself.

02
Sell the Property

Market to investors and close clean. Proceeds go into the QI's escrow, not your bank account — that's what keeps the exchange valid.

03
Identify in 45 Days

Name your replacement candidates in writing within 45 days of closing. We line up options before you ever sell.

04
Close in 180 Days

Close on the replacement within 180 days of the sale. We build the schedule so the clock never forces a bad buy.

05
Match Value & Debt

Buy equal-or-greater value and replace the debt to fully defer. Anything you pull out (boot) is generally taxable.

06
File & Reinvest

Take title and report the exchange on IRS Form 8824. Your gains stay invested instead of going to the tax bill.

Educational information, not tax or legal advice. Consult your CPA or tax attorney and a qualified intermediary before acting.

Know the Rules

The requirements that make it work

45

Days to Identify

You have 45 calendar days after closing to identify replacement property in writing — commonly up to three properties.

180

Days to Close

The replacement purchase must close within 180 days of the sale (or your tax-filing deadline, if earlier). The clocks run concurrently.

QI

Qualified Intermediary

A neutral third party holds the proceeds. If you touch the money, the exchange fails — the QI must be in place before closing.

Equal or Greater

Match Value & Debt

To fully defer, buy replacement property of equal-or-greater value and replace the debt. Cash you take out is generally taxable boot.

Like-Kind

Held for Investment

Both properties must be held for investment or business use. Real estate is broadly like-kind to other U.S. real estate.

8824

Report It

The exchange is reported to the IRS on Form 8824 for the tax year of the sale. Your CPA handles the filing.

If You Don't Want Another Building

Exchange into passive ownership

Some owners want the tax deferral without another set of tenants and toilets. Certain structures — such as a Delaware Statutory Trust (DST) — can qualify as replacement property and offer a passive, professionally managed fractional interest. But they carry real trade-offs.

DSTs — Read the Fine Print

Illiquid — typically a 5–10 year hold. Accredited investors only in most cases. Fees and loads reduce your effective return. No control over the underlying property. Market risk — value and income can fall.

Securities like DSTs are offered only through a licensed representative. I don't sell securities or give investment advice.

Exclusive Seller Program

The MultifamilyMaximum Net Method

A pre-listing system for owners of 2–20 units across San Mateo & Santa Clara Counties — engineered to surface hidden equity, lift NOI before you sell, and coordinate your 1031 exchange, CPA, and tenants so you walk away with the largest possible check.

$1,000Credit toward your 1031 exchange fees — QI, accommodator, and exchange documentation.
$1,000Credit toward your CPA's tax-planning fees for the year of sale.
Walk-Away ClauseCancel any time before we begin marketing the property — no fees, no penalty.

1031 Questions

What owners ask most

No — it's tax-deferred, not tax-free. You postpone the capital-gains tax and depreciation recapture by reinvesting; the liability carries forward into the new property.

The exchange generally fails, and the sale becomes taxable. There's very little flexibility, which is why we identify candidates before you sell. In addition, we can incorporate closing extensions to prolong this timeline.

You can, but cash or debt relief you keep is boot and is generally taxable. To fully defer, reinvest all the equity and replace the debt.

No. I'm a real estate broker, not a CPA, attorney, or qualified intermediary. I coordinate the transaction and timeline, and prepare a clean packet for your own advisors.

Often it's discussed alongside one. Rules around basis and inheritance are nuanced, so those questions go to your estate attorney and CPA.

Client Reviews

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“Jesus did a great job selling our two units in San Jose while we were out of the country for a family emergency. We owe him big time.”

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Jon B. · San Bruno, CA · Colleague
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“Jesus was great to work with! He made the selling process smooth and easy. I highly recommend him as an agent in San Bruno.”

Suraj B. · San Bruno, CA · Investor
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Elizabeth G. · Vallejo, CA · Seller / Investor
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“Jesus Zazueta worked closely with us on the sale of a property we had. He helped us by giving our tenants the proper notices to move out, kept us updated throughout, and took the action needed to make the sale. We are thankful to Jesus for his professionalism, attention, and guidance in getting our property sold.”

Rudy L. · Investor
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“Jesus is someone who is reliable, kind, and very professional. He has helped me for the last few years and has always been helpful. I definitely recommend him for any of your real estate needs.”

Linda L. · Redwood City · Investor
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“Thanks to Jesus, our house was sold in one month. The entire process was easy and without any setbacks.”

Juanita S. · San Bruno · Seller
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“Jesus is a true professional. He reached out to me to help a client of his that was looking to buy an investment property in my area. He really cares about his clients and asked me a lot of questions to make sure I would be a good fit for the scenario and client. He is so knowledgeable, personable and does what he says! I am thrilled to have this connection and highly recommend him to anyone looking to buy in Sunnyvale, CA or the surrounding area.”

Shirley Larkins · Sunnyvale, CA · Colleague

Considering an exchange?

Let's map the timeline, the numbers, and your replacement options before anything is on the market. No obligation.

Educational information only, not tax or legal advice. Consult your CPA, tax attorney, and a qualified intermediary before acting.