The 1031 Tax Deferred Exchange is a method by which owners of investment property may transfer the equity in their current property into a new property without triggering a taxable event.
What will a 1031 Tax Deferred Exchange do for you?
The 1031 Tax Deferred Exchange preserves your equity by deferring the tax you would pay on the Capital Gain you would realize if you sold your property outright. It allows you to re-leverage your investment, thereby increasing your real estate holdings. You lose none of your equity to taxes, thus allowing you to transfer your maximum equity into the purchase of your next property.
There are several terms used in defining the Exchange process, as well as 3 basic rules.
Terms
DOWNLEG - Property you are relinquishing or selling.
UPLEG - Property you are acquiring or buying.
CONCURRENT EXCHANGE - When the upleg you desire has been located and is available to close escrow at the same time as your downleg.
DELAYED EXCHANGE - (STARKER EXCHANGE) - Used when the upleg property you desire either hasn't been located or if located can't close escrow concurrently with your downleg property, (you must properly identify your upleg property - see rule #3).
BASIS - The cost figure given to you (the client) by your accountant, which is carried over to the new property. It is very important that you have your accountant determine your property's basis, as it is an important consideration in choosing the value of your upleg.
BOOT - The IRS's term for Cash-Value. Boot may be any one of the following or any combination of the following: 1) cash you receive; 2) loans on your current property which are paid off or paid down. (debt relief); 3) loans on your current property which are assumed by the next owner (debt relief); or 4)valuable goods or services - either given or promised as part of the purchase price of your new property.
RULE 1: Like for Like Investment real estate for investment real estate. You may exchange a duplex for a house, an apartment complex for vacant land in certain instances, etc. (or any combination as long as you follow rule #2).
RULE 2: Equal to or Greater Than A. The value of your new property must be equal to or greater than the value of your old property, less costs of sale. B. The debt amount (mortgage) on your new property must be equal to or greater than the debt amount on your old property.
RULE 3: Identification Within 45 days from the close of escrow on your downleg property, you must choose your upleg property. This must be evidenced by purchase contract or notification to escrow or your accomadator. You may identify up to (a) 3 properties of any value or (b) more than 3 properties whose combined values are less than 200% of the value of the downleg property. Escrow on your upleg property must close within 180 days of the date your downleg closed or before you file your next tax return.
Enclosed information is deemed reliable but is not guaranteed.
Based on information from California Regional Multiple Listing Service, Inc. as of 09-09-2025 11:31 pm. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
Based on information from the TARMLS 2025. All information provided is deemed reliable but is not guaranteed and should be independently verified. TARMLS, Estately and their affiliates provide the MLS and all content therein “AS IS” and without any warranty, express or implied. The information included in this listing is provided exclusively for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The information on each listing is furnished by the owner and deemed reliable to the best of his/her knowledge, but should be verified by the purchaser. TARMLS and Estately assume no responsibility for typographical errors, misprints or misinformation. This property is offered without respect to any protected classes in accordance with the law. Some real estate firms do not participate in IDX and their listings do not appear on this website. Some properties listed with participating firms do not appear on this website at the request of the seller. Data last updated: 09-10-2024 8:30 pm
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed.
All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Listings on this page identified as belonging to another listing firm are based upon data obtained from the PAAR MLS, which data is copyrighted by the Prescott Area Association of REALTORS® but is not warranted.
IDX information is provided exclusively for consumers personal, non-commercial use, that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. IMLS does not assume any liability for missing or inaccurate data. Any search result and subsequent display of listings must have the following disclaimer: Information provided by IMLS is deemed reliable but not guaranteed.
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed. Listing last modified: 09-10-2025 1:30 am
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed. Listing last modified: 09-10-2025 1:30 am
Based on information from California Regional Multiple Listing Service, Inc. as of 07-28-2022 6:05 pm. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
Listing courtesy of REALTRACS as distributed by MLS GRID. Based on information submitted to the MLS GRID as of 10-03-2024 3:30 pm. All data is obtained from various sources and may not have been verified by broker or MLS GRID. Supplied Open House Information is subject to change without notice. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.
Based on information from CRISNet MLS as of 09-14-2023 4:30 pm. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed.
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker’s offer of compensation is made only to participants of the MLS where the listing is filed. Listing last modified: 09-10-2025 1:30 am
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed.
Based on information from the Fresno Association of REALTORS® (alternatively, from the Fresno MLS) as of 09-10-2025 1:31 am. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed.
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed.
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed.
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed.
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed.
IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed.
