You could theoretically defer capital gains taxes indefinitely if you continued exchanging for what the IRS calls "like-kind properties."
That's what part-time real estate investor Steve Lewis, who bought his first property in 2000 and expanded to three rentals before selling in 2024, found when he attempted a 1031 exchange.
Then, you must close on the replacement property within 180 days of your initial property sale.
While his failed 1031 experience may be "rare," he noted, "there are so many things that could delay a closing."
Lewis says he'd consider a 1031 exchange in the future if the 180-day rule were extended to a year.
Persons:
—, Steve Lewis, Lewis, that's, he'd, He'd
Organizations:
Service, Business