By David Parks · eXp Realty · The Apollo Group · 2 min read
A 1031 exchange lets an investor defer capital gains tax by selling an investment property and reinvesting in a similar one. Strict timelines and rules apply, so work with a qualified intermediary and tax professional.
Under Section 1031 of the tax code, you can exchange investment real estate for other investment real estate and defer taxes on the gain. It applies to investment or business property, not your primary home.
Missing a deadline can disqualify the exchange. Start planning before you list your property.
Debt replacement, fees, and market availability all affect results. Deferral is not the same as elimination, since taxes may be due later.
This is a general overview, not tax advice. An investor’s agent can help with property searches, and a CPA and intermediary should guide the exchange.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
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