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A 1031 exchange replacement property is the new investment property that a buyer purchases as part of a 1031 tax-deferred exchange. In this process, an investor sells one property (called the relinquished property) and reinvests the proceeds into another qualifying property to defer capital gains taxes.
To qualify as a replacement property, it must be:
Like-kind (another real estate investment or business property)
Identified within 45 days of selling the original property
Purchased within 180 days
Equal or greater in value to fully defer taxes
Replacement properties are commonly used by investors to upgrade, diversify, or reposition their real estate portfolio while maintaining tax advantages.
A 1031 exchange replacement property is the new investment property that a buyer purchases as part of a 1031 tax-deferred exchange. In this process, an investor sells one property (called the relinquished property) and reinvests the proceeds into another qualifying property to defer capital gains taxes.
To qualify as a replacement property, it must be:
Like-kind (another real estate investment or business property)
Identified within 45 days of selling the original property
Purchased within 180 days
Equal or greater in value to fully defer taxes
Replacement properties are commonly used by investors to upgrade, diversify, or reposition their real estate portfolio while maintaining tax advantages.