1031 Exchange Into an Austin Rental: Rules, Timeline, and Mistakes to Avoid

Fri, 15 May 2026 00:00:00 +0000

IRC Section 1031 lets you sell an investment property, roll the entire sale price into a “like-kind” replacement property, and defer 100% of the federal capital gains tax and depreciation recapture. Zero owed at closing. But you have exactly 45 calendar days from the sale to identify the replacement in writing, and 180 days total to close on it. Miss either deadline by a single day and the entire deferral is gone, you owe federal LTCG plus depreciation recapture plus the 3.8% NIIT, and you find out about it on next April’s return.

Investment Property on Kendall Creek Properties — Austin Property Management

1031 Exchange Into an Austin Rental: Rules, Timeline, and Mistakes to Avoid