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 My Exchange →

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.

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.

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.

Identify in 45 Days

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

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.

Match Value & Debt

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

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

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.

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.

1031 Questions

What owners ask most

Is a 1031 exchange tax-free?

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.

What happens if I miss the 45- or 180-day deadline?

The exchange generally fails and the sale becomes taxable. There's very little flexibility, which is why we identify candidates before you sell.

Can I take some cash out of the deal?

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.

Do you provide the tax or legal advice?

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.

Can a 1031 be part of my estate plan?

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

★★★★★ 5.0

60+ five-star reviews from local clients

Rated 5.0 stars on Google across San Mateo & Santa Clara Counties.

★★★★★

"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."

Diana Sultana · Seller / Investor

★★★★★

"Jesús walked us through a 1031 exchange step by step couldn't have done it without him. He was also very patient with us..."

Robert M. · Redwood City

★★★★★

"My mom needed a Spanish-speaking agent for her investment properties. Jesus helped her understand her options. Great job!"

Chris Knapp · Investor referral

★★★★★

"Straightforward and no pressure. He told us to hold when it wasn't the right time to sell."

Linda & Gary P. · San Mateo

★★★★★

"Filled our 4-plex in Redwood City with travel nurses. It's been smooth this entire time. I would recommend you call him."

Linda L. · Landlord / Redwood City

★★★★★

"As the transaction coordinator on the file, I can confidently say Jesus is an exceptional agent — organized, responsive, and proactive at every stage."

Option One · Transaction Coordinator

★★★★★

"Bilingüe y muy profesional. Le explicó todo con paciencia a mis padres y nos ayudó a tomar la mejor decisión."

Marisol V. · San José

★★★★★

"...I've never worked with an agent this organized."

David C. · Santa Clara

★★★★★

"We would recommend 100%. Helped us buy an investment condo in San Jose many years ago."

Karen T. · Belmont

A selection of reviews. Some cards are placeholders — replace with your live Google reviews.

Defer the tax.Keep your equity working.

Plan Your 1031 Exchange

What is a 1031 Exchange?

Six steps, two clocks you can't miss

The requirements that make it work

Days to Identify

Days to Close

Qualified Intermediary

Match Value & Debt

Held for Investment

Report It

Exchange into passive ownership

The MultifamilyMaximum Net Method

What owners ask most

60+ five-star reviews from local clients

Considering an exchange?

Defer the tax.
Keep your equity working.