1031 Exchange Tools & Software Stack (2026)

A 1031 exchange has two hard IRS deadlines: the identification period (45 days) and the exchange period (180 days). The identification period starts when the relinquished property closes — you have exactly 45 days to identify up to three replacement properties in writing to your qualified intermediary. The exchange period is 180 days from closing, or your tax return due date (including extensions), whichever comes first. Neither deadline can be extended by the IRS, so timing your closing dates carefully is essential. Use our free 1031 Exchange Calculator to model your specific timeline.

Boot is any additional value you receive that is not "like-kind" property — cash, debt relief, or property that does not qualify as replacement property. If you sell a $500,000 property and buy a $400,000 replacement, the $100,000 difference is boot and is taxable as capital gain. Similarly, if the replacement property has a lower loan balance than the surrendered property, the debt reduction is also treated as boot. Boot is recognized as gain in the year of the exchange, not deferred. Our 1031 Exchange Calculator models boot scenarios automatically.

Yes, a reverse exchange allows you to acquire the replacement property before selling the relinquished property. In a reverse exchange, a qualified intermediary holds the replacement property in an exchange accommodation titleholder (EAT) entity while you sell your current property. Reverse exchanges are more complex and expensive — most QI companies charge $1,000–$2,500 for reverse exchanges versus $500–$1,000 for standard forward exchanges. They are legally valid under IRS Revenue Procedure 2000-46. Use the Deal Analyzer to model the acquisition economics before committing to a reverse exchange.

A Delaware Statutory Trust (DST) is a fractional ownership structure that allows 1031 exchange investors to pool capital into institutional-grade properties (apartment complexes, commercial, storage) without directly managing them. DSTs are treated as like-kind property for 1031 purposes, making them popular for investors exchanging into diversified assets while avoiding active management. DST interests are sold as securities — you must work with a licensed broker-dealer. DSTs are generally illiquid for 7–10 years, so understand the liquidity constraints before exchanging into one.

Both the relinquished and replacement properties must be held for investment or business use — personal residences do not qualify. Qualifying property types include: residential and commercial rental properties, raw land, leasehold interests with 30+ years remaining, and certain industrial and retail property. The properties must be "like-kind" — broadly, real property held for investment in the US exchanged for US real property held for investment. Quality and grade do not need to be equivalent. Run your specific property through our 1031 Exchange Calculator to verify qualification.

On a standard 1031 exchange, your deferred gain is: Sales price − Adjusted tax basis = Total gain. If you receive boot, the recognized gain = boot amount. Your deferred gain = Total gain − Recognized gain (boot). For example, if you sell for $600,000 with a $400,000 adjusted basis, you have a $200,000 total gain. If you receive $50,000 boot, you recognize $50,000 gain and defer $150,000. Use our free 1031 Exchange Calculator to model your specific numbers including depreciation recapture and state tax.