What is a 1031 exchange, and can you help with one?

A 1031 exchange (named for the IRS code section) lets owners of investment or business real estate defer capital gains tax by rolling the proceeds of a sale into a like-kind replacement property. The rules are strict: you generally must identify replacement property within 45 days and close within 180 days, and the proceeds must be held by a qualified intermediary, not by you, to preserve the deferral. Title and escrow companies handle the closings on both the relinquished and replacement properties and coordinate with your qualified intermediary. Kootenai Title Company closes exchange transactions on the required timeline and works alongside your intermediary and tax advisor.