A 1031 exchange lets you defer capital gains tax by reinvesting sale proceeds from an investment property into a like-kind replacement property. After closing, you have 45 days to identify replacement properties and 180 days to close. Proceeds must go through a Qualified Intermediary - you can never touch the funds directly. Primary residences do not qualify. For NYC sellers facing 35%+ combined tax rates, this is a major wealth preservation tool.
From the seller playbook: 1031 Exchange Strategy for Investment Property Sellers
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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