Tax Services
Florida 1031 Exchange
A plain look at how Florida real estate investors defer capital gains using a 1031 exchange.
Don't Hand the IRS Money You Could Keep Invested
Section 1031 lets an investor sell real estate, roll the proceeds into a like-kind replacement property, and push the capital gains tax down the road instead of paying it now - a way to upgrade or diversify a portfolio without triggering a taxable sale.
Between a qualified intermediary and your tax preparer, someone needs to be watching the deadlines that make or break your deferral - that's where we come in.
Key Things to Know
- Deferring the gain
- The deadlines that matter most
- Working alongside a qualified intermediary
Ready when you are
Operational Milestones
Evaluate
We look at the sale itself, confirm the property qualifies under 1031, and run the numbers on what you'd actually defer.
Structure & identify
A qualified intermediary gets engaged before you close, and from there we help you identify up to three like-kind properties inside that 45-day window.
Acquire & report
The intermediary coordinates your purchase within the 180-day limit, then we file Form 8824 and wrap the exchange into your annual return.
Included Services & Outcomes
There's Very Little Room for Error
45 days to name replacement properties, 180 days to close, and strict rules around intermediaries, boot, and what counts as eligible property - miss any piece of it and you can lose the exchange entirely, triggering capital gains tax immediately.
Questions
Florida 1031 Exchange FAQ
What counts as 'like-kind' property under these rules?
The IRS defines it broadly for real estate held for investment or business use - a rental house can go toward a commercial building, raw land toward an apartment complex, and so on across most real estate investment types.
Could I use this to defer tax on my own home?
No - Section 1031 is limited to property held for investment or business purposes. A primary residence doesn't qualify, though a property with mixed personal and investment use might qualify in part, depending on the specifics.
What if I blow past the 45-day or 180-day window?
The exchange falls apart completely, and the full capital gains tax comes due right away. There's essentially no flexibility on these deadlines, which is exactly why it's worth checking in with your qualified intermediary the moment the clock starts.
Since Florida doesn't have income tax, does a 1031 exchange still matter here?
It matters plenty - Florida doesn't tax individual income, but the federal capital gains tax you're deferring can still run 15 to 20 percent or higher depending on your bracket, so the exchange is doing real work.
What happens if the property I identified doesn't work out?
You're limited to what you named during the 45-day identification period. If your top choice falls through, you can still close on one of the other properties you identified - which is why it pays to list a solid backup or two from the start.
Resources
Florida 1031 Exchange insights
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