CPA-led 1031 exchange guide
Investment Property 1031 Exchange
Investment property is the bread and butter of Section 1031. Almost any U.S. real estate held for investment or productive use in a trade or business qualifies — whether it's a single rental, a portfolio, or raw land.
What counts as investment property
The IRS looks at your intent. Property held for rental, productive use in a business, or long-term appreciation qualifies. Property held primarily to flip (dealer inventory) does not, and your primary residence does not.
Holding period
There's no statutory holding period for investment property under Section 1031, but practitioners generally recommend at least 12–24 months of investment use to clearly establish intent — particularly if you've recently moved in or out of the property personally.
Planning the exchange
The same 45/180 timeline, identification rules, and equal-or-up requirements apply. Brandon walks through the equity-debt math up front so you know what replacement profile will preserve full deferral.
Frequently Asked Questions
Can I exchange a property I lived in?
Only if it was clearly converted to investment use first. A property that's been a rental for several years can qualify; one you moved out of last month generally won't.
Does a vacation rental qualify?
Often yes, if it's rented out at fair market rent and your personal use is limited per the safe harbor in Rev. Proc. 2008-16. Review the specifics with Brandon before assuming.