Two deadlines run from the day your relinquished property closes, and neither one waits for you to find the right house. This is the mechanics guide I give investors who are sourcing a Palm Beach County replacement property under IRC §1031 — written by a REALTOR® who is also a licensed general contractor and roofing contractor, so the same visit that shows you the numbers can also show you the roof.
A like-kind exchange under Internal Revenue Code §1031 lets an investor defer capital-gains tax on the sale of investment or business-use real property by reinvesting the sale proceeds into a replacement property. It is a deferral, not an exemption, and it runs on a clock: 45 calendar days from the closing of your relinquished property to formally identify replacement property in writing, and 180 calendar days from that same closing (or your tax-filing deadline, if earlier) to close on it. Miss either deadline and the exchange generally fails.
The proceeds from the sale never pass through your hands. A Qualified Intermediary (QI) — an independent party you engage before the relinquished property closes — holds the funds throughout the exchange. If you take actual or constructive receipt of the money at any point, even briefly, the exchange is disqualified.
None of this page is tax advice. Whether a specific property qualifies, how your exchange should be structured, and what your actual tax outcome will be are questions for your Qualified Intermediary and your CPA — every time, before you act on anything below. What this page covers is the mechanics of the deadlines and the Qualified Intermediary role, and the Palm Beach County property landscape an investor should understand while searching for a replacement. When you want a REALTOR® who can also walk a property's roof, structure and wind mitigation with you, call (561) 779-3213.
The clock starts the day your relinquished property closes — not the day you decide to exchange, not the day you list it. Within 45 calendar days, you must deliver a written identification of the replacement property or properties to your Qualified Intermediary, unambiguously describing each one (typically a legal description or street address). Weekends and holidays count; there is generally no extension for a slow closing or a bad week of house-hunting.
Because 45 days is short for a real estate search, most investors who are serious about a 1031 exchange start looking at replacement candidates before the relinquished property even closes, so the identification window is spent narrowing rather than starting cold. Ask your QI and CPA about the identification-rule details that determine how many properties you may name and under what value limits — those specifics are outside the scope of general guidance and depend on your transaction.
Separately from identification, you must close on the replacement property within 180 calendar days of the relinquished property's closing — or by your tax return due date for the year of the sale (including extensions), if that date comes first. The 45-day window is not extra time added to the 180 days; both periods run concurrently from the same starting date.
In a Palm Beach County market where inspections, wind-mitigation reports, and insurance quotes can each take real time to turn around, the 180-day window is tighter than it sounds once financing, title work and closing logistics are added in. Building in time for a proper condition and insurability review of the replacement property — not just a fast closing — is part of why having a REALTOR® who can assess a roof and structure directly, on the same visit, matters here.
A Qualified Intermediary is an independent third party — not your REALTOR®, not your CPA, not a family member — who is engaged before the relinquished property closes to hold the net sale proceeds and use them to acquire the replacement property on your behalf. The requirement that you never take actual or constructive receipt of the funds is one of the strictest rules in a 1031 exchange: even a brief deposit into your own account, or an arrangement that gives you the right to demand the funds, can disqualify the entire exchange.
Generally, no. Section 1031 applies to property held for investment or business use, not to a primary residence held for personal use — the like-kind exchange rules and the personal-residence capital-gains exclusion under a different code section serve different purposes and generally are not interchangeable. There are edge cases involving mixed-use or converted property that depend heavily on the specific facts and history of a property. This is a question to bring to your CPA before you assume either way.
If your replacement property is a condominium or sits inside an HOA, the association's finances are part of the investment, not a side detail. A reserve study that is underfunded, a milestone inspection (SIRS) that surfaces structural repair needs, or a board vote on a special assessment can materially change the property's economics after you have already closed within your 180-day window — and unlike the identification and closing deadlines, the association's timeline is not on your calendar.
This is squarely BeacCorp Property Management's own domain. Before you identify a condo or HOA property as a replacement, read the condo milestone inspection & SIRS guide and see how HOA management works from the inside — what a well-run association's books and reserve schedule should look like versus one that is quietly heading toward a special assessment.
A 1031 exchange is a transaction under Internal Revenue Code §1031 that lets an investor defer capital-gains tax on the sale of investment or business-use real property by reinvesting the proceeds into a like-kind replacement property. It is a tax deferral, not a tax exemption, and it must follow strict timing and structuring rules — always confirm your specific situation with your Qualified Intermediary and CPA.
In real estate, "like-kind" is interpreted broadly — most real property held for investment or business use can generally be exchanged for other real property held for investment or business use, regardless of type or grade. Whether a specific property you own or are considering meets the like-kind and use requirements is a question for your CPA and Qualified Intermediary, not something to assume from a general description.
Within 45 calendar days of closing the sale of your relinquished property, you must deliver a written identification of your candidate replacement property or properties to your Qualified Intermediary. The clock starts at closing, runs on calendar days including weekends and holidays, and there is generally no extension for a slow search. Ask your QI about the specific rules governing how many properties you may identify.
You must close on the replacement property within 180 calendar days of the relinquished property's closing, or by your tax return due date for that year (including extensions) if earlier. The 180 days run concurrently with the 45-day identification window, not in addition to it — both start on the same closing date.
A Qualified Intermediary is an independent third party engaged before your relinquished property closes to hold the sale proceeds and use them to acquire your replacement property on your behalf. If you take actual or constructive receipt of the funds at any point — even a brief deposit into your own account — the exchange is generally disqualified. Engage your QI early, before the relinquished sale closes.
Generally no. Section 1031 is built around property held for investment or business use, not a personal residence. There are mixed-use and converted-property edge cases that depend heavily on the specific facts — consult your CPA before assuming either way.
Florida has no state income tax, which is a real reason 1031 investors target Florida generally when weighing after-tax returns on rental income and eventual disposition. Within Florida, Palm Beach County offers a documented condo/HOA and landlord-tenant landscape and a REALTOR® who can also evaluate a replacement property's physical condition on the same visit.
Most 1031 buyers can't also assess a roof, structure or wind mitigation themselves, so a physical-condition review usually waits on a separate inspector's schedule — time the 180-day clock keeps running against. Randolph Scott Bell is a REALTOR® (SL3247858) and a Certified General Contractor (CGC1528750) and Certified Roofing Contractor (CCC1332751), so the same visit that evaluates the numbers can also evaluate the building.
Because the 180-day closing deadline is on your calendar, not the association's. A reserve study shortfall, a milestone inspection (SIRS) finding, or a new special assessment can change a condo or HOA replacement property's economics after you've already closed. Read the property's reserve study and milestone report before you identify it, not after.
No. This page explains general 1031 exchange mechanics and the Palm Beach County property landscape; it is not tax, legal or investment advice. Every eligibility, structuring or outcome question specific to your situation should go to your Qualified Intermediary and your CPA before you act.