1031 Exchanges
Sell one investment property, buy the next and defer capital-gains tax — we close both sides of your exchange and keep every deadline on track.
A 1031 exchange (named after Section 1031 of the tax code) lets you sell investment or business real estate and reinvest the proceeds in like-kind real estate while deferring capital-gains tax. Since 2018 it applies to real estate only, and your personal home doesn't qualify.
The rules are strict: the sale proceeds must never reach you, and two deadlines start the day your sale closes. That's where an experienced title company makes the difference.
- Investment & rental property
- Both sides of the exchange
- Qualified Intermediary coordination
- 45-day identification
- 180-day closing
- DSCR loans & short-term rentals
How your exchange works with us
Tell us early
Let us know it's a 1031 exchange before you sign — ideally when you list. Your contract and closing documents need the right exchange language.
Choose your Qualified Intermediary
An independent Qualified Intermediary (QI) holds your sale proceeds. We coordinate with the QI you choose from day one.
Close the sale
We close your relinquished property and send the proceeds directly to your QI — never to you.
Identify within 45 days
You have 45 days from the sale to identify your replacement property in writing to your QI.
Buy within 180 days
Close on the replacement within 180 days of the sale (or by your tax-return due date, if that comes first). We draw the funds from your QI and close.
Clean records
You receive complete settlement statements for both sides for your CPA.
What to have ready
- Your Qualified Intermediary's contact details
- The contract for the property you're selling
- Your CPA or tax advisor's contact details
- Your lender's details for the new purchase (DSCR or other financing)
- Entity documents if an LLC or trust holds title — the same taxpayer must sell and buy
Questions we hear
Can Loudoun Title be my Qualified Intermediary?
No — the Qualified Intermediary must be an independent party. We work hand-in-hand with the QI you choose and coordinate every step with them.
Does my home qualify for a 1031 exchange?
Generally no. 1031 exchanges are for property held for investment or business use, such as rentals, land or commercial buildings. Your CPA can confirm for your situation.
What if I miss the 45-day or 180-day deadline?
The deadlines generally can't be extended, so a missed date can cause the exchange to fail and the gain to become taxable. That's why we plan the timeline with you from the start.
Can I use a DSCR loan for the replacement property?
Yes. Many investors finance the replacement property with a DSCR loan, and we close DSCR-financed purchases while coordinating with your lender and your QI.
Do you close short-term rentals like Airbnb properties?
Yes — we recently closed an Airbnb investment property. Short-term rentals held for investment can be part of a 1031 exchange; your CPA confirms how yours qualifies.
Loudoun Title closes your transactions; we don't give tax or legal advice. Talk to your CPA or tax attorney about whether a 1031 exchange is right for you.