1031 Like-Kind Exchange — Tax Deduction Guide 2026
Defer capital gains taxes by exchanging investment real estate for like-kind property.
Eligibility
Real estate investors exchanging investment properties
Tax Savings Calculator
Estimated Tax Savings
$1,100
At the 22% tax bracket, a $5,000 deduction saves you $1,100 in taxes.
Savings by Tax Bracket
Requirements
- 1Real property only
- 245-day identification
- 3180-day completion
Common Mistakes to Avoid
- !Missing deadlines
- !Using for personal residence
Required Tax Forms
1031 Like-Kind Exchange by State
State rules and tax rates affect the value of this deduction. Check your state for localized guidance:
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Frequently Asked Questions
What is the 1031 Like-Kind Exchange?
Defer capital gains taxes by exchanging investment real estate for like-kind property.
Who is eligible for the 1031 Like-Kind Exchange?
Real estate investors exchanging investment properties
How much can I save with the 1031 Like-Kind Exchange?
The average tax savings is $30,000 per year. Your actual savings depend on your tax bracket and qualifying amount.
What forms do I need for the 1031 Like-Kind Exchange?
You'll need to file Form 8824 to claim this deduction.
What are common mistakes with the 1031 Like-Kind Exchange?
Common mistakes include: Missing deadlines; Using for personal residence. Always double-check requirements before filing.
Is the 1031 Like-Kind Exchange worth claiming?
With average savings of $30,000, the 1031 like-kind exchange is highly valuable. Make sure you meet all eligibility requirements.