Land · Commercial · New development — Daytona Beach and Central Florida

Lifestyle Group at Oceans Commercial — home Contact us

1031 exchanges

1031 exchange representation

Buying and selling real property inside the 45- and 180-day windows of a like-kind exchange. We find, underwrite and negotiate replacement property, and we time dispositions for owners who plan to exchange — alongside your qualified intermediary, CPA and attorney, never in their place.

Start a conversation Deadline calculator

What a 1031 exchange is

Section 1031 of the Internal Revenue Code lets an owner sell real property held for investment or for use in a trade or business, acquire other like-kind real property, and defer the gain on the sale.

Three points matter more than the rest. First, only real property qualifies. For exchanges completed after December 31, 2017, equipment, vehicles and other personal property no longer do. Second, like-kind is a broad standard for real estate. Whether a property is improved or unimproved goes to its grade or quality, not its kind, so vacant land and an improved commercial building are generally like-kind to each other. Third, the tax is deferred, not eliminated. Your basis carries over into the replacement property, and any cash or non-like-kind property you receive at closing — “boot” — is taxable up to the amount of your gain.

Two exclusions come up often in land work. Property held primarily for sale — a builder’s or developer’s inventory of lots, for example — is dealer property and does not qualify. And real property in the United States is not like-kind to real property outside it. Whether a particular parcel is investment property or dealer property is a question for your CPA, and it is worth asking before you sign a contract, not after.

The exchange is reported on IRS Form 8824 for the year the relinquished property is transferred. Nothing in the 2025 federal tax law changed Section 1031 itself.

The rules in brief

  • Real property only

    Since the 2017 tax law; personal property is out.

  • Like-kind is broad

    Land, retail, industrial, multifamily and office are like-kind to one another when held for investment or business use.

  • Deferral, not elimination

    Basis carries over; boot is taxed up to the gain.

  • Dealer property excluded

    Lots and parcels held primarily for sale do not qualify.

  • U.S. property only

    Domestic and foreign real property are not like-kind.

The calendar

The timeline: day 0, 45 and 180

Both periods begin on the day the relinquished property is transferred and run concurrently. They are counted in calendar days; a deadline that lands on a weekend or holiday does not move.

Calculate your dates 
  1. Day 0 Relinquished property closes Sale proceeds go to your qualified intermediary under a written exchange agreement. If they reach you, or your agent, the exchange fails.
  2. Day 45 Identify replacement property in writing A document you sign, delivered before midnight of day 45 to the intermediary or another party who is not disqualified. Each property must be unambiguous: a street address, a legal description or a distinguishable name.
  3. Day 180 Receive the replacement property* Title must transfer to you by day 180, or by the due date of your tax return for the year of the sale, with extensions, if that comes first.
  • 3 Three-property rule

    Identify up to three properties of any value. Most exchanges use this rule.

  • 200% 200-percent rule

    Identify any number of properties whose combined fair market value is no more than 200% of the value of the property you sold.

  • 95% 95-percent exception

    If you exceed both limits, the exchange survives only if you acquire at least 95% of the total value of everything you identified.

*The IRS extends the 45- and 180-day deadlines only when it announces relief for a federally declared disaster (Internal Revenue Code §7508A; Rev. Proc. 2018-58). Sources: IRC §1031(a)(3); Treasury Regulation §1.1031(k)-1(b)–(c); IRS Form 8824 instructions.

Structures

Is an exchange right for you?

The structure should follow your goals, not the other way round. These are the shapes an exchange usually takes. Which one fits — and whether any of them does — is a conversation with your tax advisor.

  • Full exchange

    You acquire replacement property of equal or greater value, reinvest all of the net equity, and replace the debt paid off at closing with new debt or cash. All of the gain is deferred.

  • Partial exchange

    You take some cash out, or buy down in value or debt. The exchange still works, but the boot you receive is taxable up to the amount of your gain. Sometimes that trade is the right one, and it is worth pricing with your CPA before you decide.

  • Reverse and improvement exchanges

    You need to buy before you can sell, or you want exchange funds to pay for construction on the replacement property. Under the IRS safe harbor (Rev. Proc. 2000-37, as modified by Rev. Proc. 2004-51), an exchange accommodation titleholder holds the property while the exchange completes; the same 45- and 180-day limits apply.

    These structures add cost and documents, and they are set up with your qualified intermediary and attorney before you close on anything.

  • A Delaware Statutory Trust interest as one option

    Some exchangers identify a fractional interest in a DST as one replacement property, or as a backup. DST interests are securities sold only through registered broker-dealers. We can explain what they are; we do not offer, sell or recommend them.

    Delaware Statutory Trusts, explained 

Our focus

Exchanging land into income property

Much of the land in our market is sold by families and long-term holders to homebuilders and developers. Because improved and unimproved real property are like-kind, an owner who sells acreage can exchange into property that produces income — a single-tenant net-lease building, small-bay industrial, self-storage, a multifamily property — and defer the gain on the land sale.

The difficulty is the calendar. Income property with credit tenants and clean title does not appear on demand, and 45 days is not long to find it, underwrite it and identify it in writing. The exchanges that work are the ones where the search starts while the land is still under contract, so that on day 0 there is a short list rather than a blank page.

Two cautions. If the land was subdivided and held for sale, it may be dealer property that does not qualify; your CPA decides that, not the sale contract. And a builder’s takedown contract — where lots close in phases over several years — creates several transfer dates, each with its own 45 and 180 days. Plan the exchange around the takedown schedule, not just the first closing.

How we work

  1. Before the relinquished sale closes We review the sale contract’s closing date with you and your qualified intermediary, confirm the exchange agreement is in place, and begin the replacement search.
  2. Sourcing Listed property, and property that is not listed: owners we know, brokerages we work with regularly, and buildings we have underwritten before. Land, retail and net lease, industrial and flex, self-storage, multifamily, office and medical.
  3. Underwriting Price against the equity and debt you need to replace; rent rolls and tenant credit where there is income; and the physical, title and environmental diligence that decides whether a property can close on time.
  4. Identification We help you describe each candidate unambiguously, keep the list inside the three-property or 200-percent rule, and get the signed identification to your intermediary before midnight of day 45.
  5. Negotiation and closing Contracts whose diligence and closing periods fit inside day 180; coordination with the lender, title company and intermediary; and a closing calendar we track with you.

What we analyze

  • Equity and debt to replace

    And the purchase-price range that follows from them.

  • Property type and location

    Against your objectives for income, management and hold period.

  • Tenant credit and lease terms

    Where the replacement property has income in place.

  • Diligence timelines

    Survey, title, environmental and inspection periods, and whether they fit inside day 180.

  • The identification list

    Value against the 200-percent limit, and which backup to carry.

  • The closing calendar

    Lender, title and intermediary dates, tracked against day 180.

Roles

Working with your qualified intermediary, CPA and attorney

An exchange has three professionals in it besides your real estate representation. The qualified intermediary holds the sale proceeds and documents the exchange. The CPA determines what qualifies, advises on structure, and reports the exchange on Form 8824. The attorney reviews the exchange agreement and the purchase contracts. We coordinate with all three, and we are careful about the line between their work and ours.

We cannot act as your qualified intermediary, and we cannot hold exchange funds. Under Treasury Regulation §1.1031(k)-1(k), a taxpayer’s real estate agent or broker within the prior two years is a disqualified person for that role. The rule exists so that no one who works for you controls the money. If proceeds pass through your hands, or through the hands of someone who is your agent, the exchange fails. Choose your intermediary before the relinquished property closes, and confirm the exchange agreement limits your rights to the funds, as the safe harbor requires.

We also do not tell you whether a transaction qualifies. That is tax and legal advice, and the answer depends on facts we do not have: how the property was held, related-party ownership, prior exchanges, your return’s due date. What we can do is give your advisors accurate, timely information about the properties, the contracts and the dates, and keep the property side moving so their advice has something to attach to.

Questions we hear

Frequently asked

Can I exchange vacant land for a building that produces income?

Generally, yes. Under the Treasury regulations, whether real property is improved or unimproved goes to its grade or quality, not its kind, so land held for investment and an income-producing building are like-kind to each other. The land must have been held for investment or business use rather than primarily for sale, and every other requirement of §1031 must be met. Confirm your facts with your CPA before you contract to sell.

Can you act as my qualified intermediary?

No. Under Treasury Regulation §1.1031(k)-1(k), a taxpayer’s real estate agent or broker within the prior two years is a disqualified person, so we cannot serve as your qualified intermediary or hold exchange funds. Choose an independent qualified intermediary before your relinquished property closes.

What happens if I miss the 45-day identification deadline?

If no replacement property has been identified in a signed writing delivered by midnight of day 45, the exchange fails and the sale is treated as a taxable sale. Up to that moment you may revoke an identification and substitute another in writing. Identify early, and keep a backup on the list.

Can the 45- and 180-day deadlines be extended?

Only when the IRS announces relief for a federally declared disaster, which does happen in Florida after hurricanes. Otherwise the periods are fixed in calendar days. The 180-day period can also end sooner: it ends on the due date of your tax return for the year of the sale, including extensions, if that comes first. Ask your CPA whether filing an extension gives you the full period.

I subdivided my land into lots. Can I still exchange?

Possibly not. Property held primarily for sale — subdivided lots marketed to buyers, for example — is dealer property and is excluded from §1031. Whether your parcels are investment property or dealer property depends on your facts and is a question for your CPA and attorney.

Can I buy my replacement property from a family member or a company I own?

Related-party exchanges carry special rules. If either related party disposes of the exchanged property within two years after the last transfer, the deferred gain is generally recognized, with narrow exceptions, and an anti-abuse rule blocks structures designed to let a related party cash out through an intermediary. Raise this with your CPA and attorney before you sign anything.

Educational information only — not tax or legal advice. Oceans Commercial and the Lifestyle Group team are licensed Florida real estate professionals. We are not attorneys, CPAs, or qualified intermediaries, and we cannot serve as your qualified intermediary or hold exchange proceeds. Under Treasury Regulation §1.1031(k)-1(k), a taxpayer’s real estate agent or broker within the prior two years is generally a “disqualified person.” Whether a transaction qualifies for tax deferral under Internal Revenue Code §1031 depends on your specific facts. The 45-day identification and 180-day exchange deadlines are strict and are generally extended only when the IRS announces relief for a federally declared disaster. Please consult your own tax advisor, attorney, and qualified intermediary before you sell or contract to sell any property you intend to exchange. Information current as of September 2026; tax laws and IRS guidance change.

On the clock, or about to be?

Tell us your closing date and what you need to replace. We will start the search before the calendar does.

Start a conversation Call Drake Dickerson

Drake Dickerson — Partner, Land & Commercial · (407) 489-4774

Oceans Commercial · Licensed Florida real estate brokerage