1031 exchange — the deadline-driven version.
A practical read on how 1031 exchanges work for Texas investors: the 45/180 clock, the QI handoff, and the replacement-property strategy. Educational only — your CPA renders tax opinions.
Three windows. One QI. No constructive receipt.
The clock starts at close of the relinquished property. The deadlines are firm. Most failed exchanges fail in the 45-day identification window, not the 180-day acquisition window.
Sale closes, QI holds
The Qualified Intermediary takes the proceeds at close. You do not touch the money. Constructive receipt blows the exchange. The clock starts.
Identification deadline
Replacement property identified in writing per IRS rules (typically the three-property rule or 200% rule). Most failed exchanges fail here.
Acquisition deadline
Replacement property closed and funded through the QI. Equity and debt rebuilt to maintain full deferral. Done.
This page is educational framing for Texas investors. We are not a Qualified Intermediary, a CPA, or a tax attorney. Specific structure, tax treatment, and exchange success depend on your full facts and the professionals you retain. Coordinate the exchange with a licensed QI and your CPA.
Frequently Asked Questions
What's the basic 1031 framework?
Sell investment real estate, defer capital gains by reinvesting proceeds into like-kind investment real estate. Identification of replacement property within 45 days of close. Acquisition of replacement within 180 days. Funds held by a Qualified Intermediary the entire time. Specific IRS rules apply; this page is educational, not tax advice.
What qualifies as like-kind?
Generally any real property held for investment or business use, exchanged for any other real property held for investment or business use. Personal residences don't qualify. Specific edge cases need a CPA — we don't render tax opinions.
What's a Qualified Intermediary (QI), and do I need one?
A QI holds the proceeds between sale and replacement so you don't take constructive receipt — which would blow the exchange. Yes, you need one. We coordinate with established Texas-licensed QIs.
What happens if I miss the 45 or 180 day deadline?
The exchange typically fails and the sale is treated as a taxable event. Deadlines are calendar-day, not business-day. We build the acquisition timeline backward from day-180 to avoid missing it.
Working on a 1031 right now?
Tell us where you are in the clock and the buy box for replacement. We can move fast and we know which QIs work.