A Section 1031 like-kind exchange is one of the most powerful capital-gains deferral tools in the U.S. tax code. Done correctly, it lets you sell appreciated commercial real estate and roll the entire sale proceeds into replacement property without recognizing capital gains in the year of sale. Done incorrectly — or done late — the same transaction triggers a full tax bill.
See the most common ways exchanges go wrong →
If your relinquished property has already closed, the 45-day identification clock is running. Schedule a 1031 consultation now and we’ll start sourcing replacement properties today.
Who This Service Is For
- Investors who have sold (or are about to sell) appreciated commercial real estate
- Investors looking to consolidate multiple smaller properties into a single larger asset
- Investors looking to diversify out of a single asset into multiple replacement properties
- Investors trading out of active management (mom-and-pop properties) into passive NNN net-lease properties
- Sellers preparing to list and exchange in a coordinated process
- Owners whose relinquished property is held in a multi-member LLC, where members may want different outcomes at sale
What a 1031 Exchange Is
Section 1031 of the Internal Revenue Code allows investors to defer capital gains tax when they exchange real estate held for investment or business use for like-kind replacement real estate. “Like-kind” is interpreted broadly: an auto shop can be exchanged for a strip center, a strip center for an apartment complex, raw land for a NNN-leased fast food building. What matters is that both the relinquished and replacement properties are held for investment or productive use in a trade or business — which is also why a primary residence doesn’t qualify, even though the question comes up constantly.
The result: you sell a property that may have appreciated substantially over decades of ownership, and you don’t pay federal capital gains tax on the appreciation in the year of sale, provided you follow the rules.
This page is not legal or tax advice. Always consult a qualified CPA and 1031-experienced attorney before executing an exchange. What we provide is the brokerage and property-sourcing side.
The 45/180 Day Timeline
The 1031 timeline is unforgiving. From the day the relinquished property closes:
- Day 1–45: Identification period. You must identify replacement properties in writing to your Qualified Intermediary by midnight of the 45th day. There are three identification rules — the 3-property rule (most common), the 200% rule, and the 95% rule. We typically work with the 3-property rule.
- Day 1–180: Exchange period. You must close on one or more of the identified replacement properties by midnight of the 180th day, or by the due date (with extensions) of your federal tax return for the year the relinquished property was sold — whichever is earlier.
There are no extensions for weekends, holidays, or hardship. Missing either deadline by a single day means the entire exchange fails and the full capital gain becomes taxable.
See the full breakdown of the 45/180-day rules →
This is the single most important reason to engage a broker before the relinquished property closes — ideally before it even lists. The earlier we start sourcing replacement candidates, the larger your replacement universe and the lower the deadline pressure.
If your replacement property is ready before your relinquished property has sold, a reverse exchange runs the same clock in the opposite order — worth understanding if timing pressure is cutting the other way.
Why Broker Representation Matters
The 1031 market is genuinely different from the broader commercial market. Sellers know that 1031 buyers are under deadline pressure and price accordingly. Without representation, you face:
- Price premiums. Listings marketed explicitly to 1031 buyers often carry a 25–75 basis point cap rate premium (i.e., a lower cap rate / higher price) versus the same asset sold to a non-1031 buyer.
- Limited inventory visibility. A meaningful share of net-lease and exchange-suitable inventory in the Southeast trades off-market. Without broker access, you don’t see it. See how we source replacement property, on- and off-market →
- Underwriting blind spots. Tenant credit, remaining lease term, escalation structure, and renewal probability all materially affect long-term value — and all are easy to misread under deadline pressure.
- Failed exchanges. A property that looks great on day 30 but falls apart in due diligence on day 70 can leave you scrambling to identify a backup. The 3-property rule exists for this reason; using it well requires market depth. See the most common exchange mistakes we help clients avoid →
Our role is to compress the timeline risk, expand the inventory you’re seeing, and make sure the property you close on still pencils five years from now.
Common 1031 Scenarios We Handle
Selling appreciated Atlanta property → NNN replacement
The most common scenario. An owner has held an Atlanta property for 15–30 years, the basis is low, the equity is large, and they want out of active management. We list the relinquished asset, identify a NNN replacement property — often a QSR ground lease with a national-credit tenant — and execute the exchange.
Consolidating multiple properties
An investor with several smaller properties wants a single larger asset. We can structure the relinquished side as a series of sales feeding a single replacement, or vice versa.
Diversifying out of one asset
An investor with a single large property wants to spread risk across multiple smaller assets. The 3-property rule and 200% rule both accommodate this; geography and tenant diversification are the typical drivers. See the full mechanics of exchanging into multiple replacement properties →
Trading up the asset class
An owner of mom-and-pop retail trades into an institutional-quality property — better tenant credit, longer lease term, passive structure. For investors who want the exchange proceeds to work passively without acquiring a whole property directly, a DST is often the right structure →
Replacement Property Sourcing
We have ongoing visibility into NNN, QSR, and net-lease inventory across Georgia, Florida, the Carolinas, Tennessee, and Alabama. For 1031 clients we typically source candidates in two tiers:
- Geography-anchored — replacements in or near the relinquished property’s market, often appealing to clients who want to stay close to home.
- Yield-anchored — replacements anywhere in the Southeast that hit the client’s cap rate target, regardless of metro.
The sourcing process runs in parallel with the identification clock, not sequentially. By day 30 we typically have a working short list; by day 40 we have signed LOIs on the candidates being formally identified.
See our full approach to sourcing replacement property →
Frequently Asked Questions
What’s the deadline for identifying replacement properties?
45 calendar days from the closing of the relinquished property. No weekend, holiday, or hardship extensions. See the full 45/180-day timeline →
What’s the deadline to close on a replacement property?
180 calendar days from the closing of the relinquished property, or the due date of your tax return for that year, whichever is earlier.
Can I do a 1031 exchange on a property I’m flipping?
No. The property must be held for investment or for productive use in a trade or business. Properties held primarily for resale (“dealer property”) do not qualify. There’s no bright-line holding period in the statute, but most practitioners advise at least 12–24 months.
Can I exchange a commercial property for residential rental property?
Yes, as long as both properties are held for investment. “Like-kind” is interpreted broadly across real estate; the property types do not need to match. You cannot exchange real estate for personal property (the 2017 tax law removed personal-property exchanges), and a property you intend to live in yourself doesn’t qualify — see the full breakdown of 1031 exchanges and primary residences →
What is a Qualified Intermediary, and do I need one?
A Qualified Intermediary (QI) is a third party who holds the sale proceeds between the relinquished sale and the replacement purchase. Yes — you must use a QI. You cannot take constructive receipt of the proceeds at any point or the exchange fails. We can refer experienced Georgia-based QIs. See the full role a QI plays in your exchange →
Can I do a 1031 if I’ve already received the sale proceeds?
No. Once you take constructive receipt of the proceeds, the exchange is dead. The QI must be in place before closing.
What is a reverse 1031 exchange?
A reverse exchange is when you close on the replacement property before selling the relinquished property. It’s permitted under IRS guidance but procedurally more complex and more expensive than a standard forward exchange. See the full timeline, cost, and structure of a reverse exchange →
What is a Delaware Statutory Trust (DST), and does it qualify?
A DST is a fractional-ownership vehicle that qualifies as like-kind replacement property under IRS guidance. DSTs are useful when an investor cannot find a suitable whole-property replacement within the 45-day window, or wants a fully passive backup. We do not directly originate DSTs, but we can refer reputable DST sponsors and help evaluate them. See our full DST vs. direct ownership comparison →
Can boot trigger taxes even if the exchange otherwise works?
Yes. “Boot” — cash or non-like-kind property received in the exchange — is taxable to the extent of gain, even if the rest of the exchange qualifies. Boot most often arises from debt paydown or from the replacement property being cheaper than the relinquished property. See the full breakdown of boot mechanics, including mortgage boot →
Can an LLC do a 1031 exchange?
Yes, though the structure matters. A single-member LLC exchanges as if the individual owner did it directly. A multi-member LLC is treated as the taxpayer as a whole, which gets more complex if members want different outcomes at sale — commonly addressed with a “drop and swap” strategy. See the full LLC ownership rules →
Does Georgia recognize 1031 exchanges?
Yes. Georgia conforms to federal Section 1031 treatment for state income tax purposes.
Learn More About 1031 Exchange Strategy
- 1031 Exchange Timeline: 45 & 180 Day Rules — the identification and closing deadlines, explained in full
- Sourcing Replacement Property for Your 1031 Exchange — how we find on- and off-market candidates
- Qualified Intermediaries for Your 1031 Exchange — what a QI does and why you can’t skip one
- DST vs. Direct Ownership in a 1031 Exchange — comparing a passive fractional structure to a whole-property replacement
- Common 1031 Exchange Mistakes to Avoid — the errors that most often derail an otherwise good exchange
- Reverse 1031 Exchange — how to buy replacement property before selling the relinquished property
- Can You 1031 Exchange a Primary Residence? — the direct answer, and the strategies that actually work
- Partial 1031 Exchange & Boot — how taxable boot works, including mortgage boot
- 1031 Exchange Into Multiple Replacement Properties — diversifying a single sale across several assets
- 1031 Exchange and LLC Ownership Rules — single-member vs. multi-member LLCs, and the “drop and swap” strategy
The Clock Is Already Running
Schedule a 1031 Consultation →
Mention how many days are left on your identification clock when you submit the form — we prioritize active exchanges.