1031 Exchange Basics

The rules, deadlines, and definitions that determine whether a Pennsylvania 1031 exchange actually qualifies for tax deferral.

Learn the mechanics

What counts as like-kind real property under Section 1031 in Pennsylvania, what does not qualify, and why the standard is broader than most.

How cash boot and mortgage boot create taxable gain inside an otherwise deferred Pennsylvania 1031 exchange, with examples of common ways.

How the 45-day identification clock works in a Pennsylvania 1031 exchange, including the three-property, 200 percent, and 95 percent rules.

How the 180-day closing deadline works in a Pennsylvania 1031 exchange, how it interacts with the tax return due date, and what can shorten.

Why a qualified intermediary is required for a Pennsylvania 1031 exchange, what constructive receipt means, and how the safe harbor.

How Section 1031(f) restricts exchanges between related parties, the two-year holding requirement, and common structuring traps for.

How a reverse 1031 exchange works when a Pennsylvania replacement property closes before the relinquished sale, including the EAT parking.

How an improvement 1031 exchange lets a Pennsylvania investor use exchange funds for construction, and why every improvement must land.

Ready to organize the exchange?

Bring the property, dates, and open questions. We will help turn them into a clear exchange plan.