1031 Exchange Options for California Real Estate Investors
A 1031 Exchange allows real estate investors to defer capital gains taxes when selling one investment property and purchasing another. This strategy can preserve equity, boost buying power, and increase long-term returns — all while complying with IRS rules. If you're selling land, rental property, commercial space, or a 4-unit building, understanding your 1031 options could save you tens of thousands in taxes.
- Defer federal, state, and depreciation recapture taxes
- Exchange into different property types or markets
- Reinvest 100% of sale proceeds to maximize leverage
- Preserve generational wealth through stepped-up basis
- Must identify a new property within 45 days and close within 180
Example: Selling a $900,000 property could create a tax bill over $225,000. A properly executed 1031 Exchange can defer that entire amount — and help you buy a $1M+ replacement using pre-tax equity.
Common 1031 Exchange Questions
- Can I exchange one type of property for another? Yes — residential rentals, land, commercial, and mixed-use qualify.
- Do I need a Qualified Intermediary (QI)? Absolutely. The IRS requires a QI to hold your funds between sale and purchase.
- What are the strict deadlines? You have 45 days to identify and 180 days to close on the new property.
- Can I move into the replacement home later? Possibly — but only after holding it as an investment first, typically for 2 years.
Meet Greg Burns, IPX1031 Exchange Expert
Greg Burns is a Senior Vice President at IPX1031, the nation’s largest and most respected Qualified Intermediary. With decades of experience and thousands of exchanges completed, Greg is a trusted authority in California 1031 strategy. He works closely with real estate professionals, tax advisors, and investors to ensure fully compliant, smooth transactions.
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