# 1031 exchange

A tax deferral for real estate swapped into other real estate.

It reaches a business buyer through the building rather than through the business. A seller who owns the property may want the real estate treated as a like-kind exchange, which changes what they will accept on the building and can leave them indifferent to price there while caring intensely about timing. The deadlines are strict and they are the seller's problem until they become the closing's: a replacement property has to be identified inside forty-five days of the sale and received inside a hundred and eighty. The second clock ends sooner if that year's return falls due first, extensions included.

In numbers: On a deal where $900,000 of a $4M price is the building, the seller's exchange clock rather than the buyer's lender can set the closing date.

Source: https://searchspheresource.com/glossary/1031-exchange
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt