--- title: 1031 Basics --- [Skip to main content](https://www.venture1031.com/1031-basics#main) - [Start an Exchange](mailto:1031@ventureidaho.com?subject=Exchange%20Request%20from%20Venture%201031%20Website) [![Venture1031Company](https://www.venture1031.com/hubfs/Logos/Venture1031Company.svg) ![Venture1031Company](https://www.venture1031.com/hubfs/Logos/Venture1031Company.svg) ![Venture1031Company](https://www.venture1031.com/hubfs/Logos/Venture1031Company.svg) ![Venture1031Company](https://www.venture1031.com/hubfs/Logos/Venture1031Company.svg)](https://www.venture1031.com?hsLang=en) - [Home](https://www.venture1031.com) - [1031 Basics](https://www.venture1031.com/1031-basics) - [Contact](https://www.venture1031.com/contact) - [Venture Title & Escrow](https://www.ventureidaho.com) Open main navigation Close main navigation - [Home](https://www.venture1031.com) - [1031 Basics](https://www.venture1031.com/1031-basics) - [Contact](https://www.venture1031.com/contact) - [Venture Title & Escrow](https://www.ventureidaho.com) ![TimelineV2](https://www.venture1031.com/hubfs/TimelineV2.svg "TimelineV2") ## **What is a 1031 Exchange?** A 1031 exchange, named after Section 1031 of the Internal Revenue Code, is a tax-deferral strategy that allows investors to sell an investment or business property and reinvest the proceeds into a “like-kind” property, deferring capital gains taxes on the transaction. This powerful tool helps real estate investors preserve capital and grow their investment portfolios. **Also Known As:** - Like-Kind Exchange - Tax-Deferred Exchange - Starker Exchange - Section 1031 Exchange Whether you’re upgrading properties, diversifying your investments, or consolidating assets, a 1031 exchange can be an effective way to achieve your financial goals. ## **1031 Exchange Timeline** Strict timelines and adherence to IRS guidelines are crucial for a successful 1031 exchange. Exchange Period - 180 Days Investors have 180 days to complete the exchange. They must close on all intended purchases within 180 days of closing the sale property. Identification Period - 45 Days Within the first 45 days of the 180-day period, investors must identify up to three possible replacement properties. These are the only properties that qualify for the exchange. There are restrictions that apply to investors wishing to identify additional properties. For more information, consult a tax professional or contact us directly!     WHAT IS A TAX DEFFERED EXCHANGE? WHO CAN DO AN EXCHANGE? HELPFUL LINKS In a tax-deferred exchange, you can trade one or more properties for other properties without paying federal income taxes right away. In many cases, you won’t have to pay state income taxes either. Normally, when you sell a property, you pay taxes on any profit you make. But with this kind of exchange, those taxes are delayed until you sell the new property in the future. Exchanges can be done by individuals, trusts, corporations, partnerships, limited liability companies, or any other business entity. - [About Form 8824, Like-Kind Exchanges](https://www.irs.gov/forms-pubs/about-form-8824) - [IRS Form 8824](https://www.irs.gov/pub/irs-pdf/f8824.pdf) --- ## Helpful Links - [About Form 8824, Like-Kind Exchanges](https://www.irs.gov/forms-pubs/about-form-8824) - [IRS Form 8824](https://www.irs.gov/pub/irs-pdf/f8824.pdf) ***1031 exchange services are provided by a qualified intermediary that is a wholly owned subsidiary of Accruit LLC, an Inspira Financial solution.*** --- ![Venture1031Company_white](https://www.venture1031.com/hubfs/Logos/Venture1031Company_white.svg "Venture1031Company_white") **Get In Touch** 1800 S. Bonito Way, Suite 200 Meridian, Idaho 83642 [208-515-7740](tel:208-515-7740) [1031@ventureidaho.com](mailto:1031@ventureidaho.com) ©2024 Venture 1031  |  All Rights Reserved  |  [Privacy Policy](https://www.venture1031.com/privacy-policy?hsLang=en)