Defer Your Capital Gains. Keep Your Wealth Working.
Most brokers know the basics of a 1031 exchange. We understand the tax law, the failure patterns, and the alternative structures that most investors never hear about.
Book a Strategy CallThe Most Powerful Tax Deferral Tool in Real Estate
A 1031 exchange, named after Section 1031 of the Internal Revenue Code, allows investors to sell an investment property and defer capital gains taxes by reinvesting the proceeds into a like-kind replacement property.
Done correctly, your full equity stays in the market rather than a significant portion going to the IRS at the time of sale. Over multiple transactions, the compounding effect on wealth can be transformative.
The rules are strict, the timelines are unforgiving, and the sequencing of decisions — sale, identification, acquisition, entity structure, financing — must be coordinated from day one. That coordination is exactly what we provide.
Like-Kind Property — Both properties must be real estate held for investment or business use.
Qualified Intermediary — A neutral third party must hold proceeds. Direct receipt disqualifies the exchange.
45-Day Identification — Replacement properties must be formally identified within 45 days of closing.
180-Day Completion — The replacement property must close within 180 days. No extensions permitted.
Equal or Greater Value — To defer all gain, the replacement must equal or exceed the relinquished property's value.
Why Most Exchanges Fail — And Why It Doesn't Have to Happen to You
The single greatest failure point is the 45-day identification window. In competitive markets, finding a qualified replacement property that equals or exceeds your equity — within six weeks of closing — is harder than most investors anticipate when they begin.
The second failure point is not knowing that alternatives exist. When a traditional property exchange is at risk, there are qualifying alternative structures that can save an otherwise failing exchange. Most investors never learn about them until it is too late.
We study these failure patterns at an attorney level. Understanding them is part of how we advise clients before the clock starts, not after it runs out.
Three Dates That Define Your Exchange
Miss any of these and the tax deferral is lost entirely. We track every day.
Not Every Exchange Looks the Same
We advise on all major 1031 structures and help you identify which fits your timeline, your equity, and your goals.
Delayed Exchange
The most common structure. Sell your property, identify a replacement within 45 days, and close within 180. The sequence must be locked in before your sale closes.
Most CommonSimultaneous Exchange
Both properties close on the same day. Requires precise coordination between all parties and careful legal structuring across both transactions.
High CoordinationReverse Exchange
Acquire the replacement property before selling your current one. Requires an Exchange Accommodation Titleholder and careful legal structuring throughout.
Buy FirstConstruction Exchange
Use exchange proceeds to build or improve the replacement property. Improvements must be completed and the property received within the 180-day window.
Build or Improve“Every failed exchange is a check written to the IRS that didn’t have to be. Let’s make sure yours isn’t one of them.”
Book a Strategy CallBethesda Brokers, LLC is a licensed real estate brokerage in Maryland and the District of Columbia. Nothing on this website constitutes legal or tax advice. No attorney-client relationship is formed through use of this site. All exchange and tax strategies should be evaluated with qualified legal and tax counsel based on individual circumstances. Past transaction results are not indicative of future outcomes. © 2026 Bethesda Brokers. All Rights Reserved.