Tax-Deferred Investing
1031 Exchange
Made Simple
Sell your investment property, defer capital gains taxes, and roll your equity into a bigger deal — without writing a check to the IRS. Jordan Cooper helps St. Louis investors execute 1031 exchanges before the deadlines hit.
The Basics
What Is a 1031 Exchange?
Section 1031 of the IRS tax code allows real estate investors to sell an investment property and reinvest the proceeds into a new property of equal or greater value — deferring all capital gains taxes in the process.
Instead of paying 15–20% in federal capital gains tax (plus Missouri state tax) on your profit, those dollars stay in your investment and compound over time. It's one of the most powerful wealth-building tools available to real estate investors.
The catch: the IRS imposes strict timelines. Miss a deadline by a single day and the exchange is disqualified. That's why having a real estate agent who understands the process — and can move quickly — matters.
Why Investors Use 1031 Exchanges
Defer capital gains tax
Keep more money working for you
Upgrade to larger properties
Scale from a duplex to a 10-unit building
Diversify your portfolio
Move from one market or property type to another
Consolidate holdings
Exchange several small properties for one larger one
Estate planning tool
Heirs receive a stepped-up basis, potentially eliminating deferred gains
Critical Deadlines
The 45/180 Day Timeline
The IRS gives you exactly 45 days to identify a replacement property and 180 days to close. Not a day more.
Property Closes
Your relinquished property closes. The exchange clock starts immediately. Proceeds must go directly to a qualified intermediary — never to you.
Identification Deadline
You must identify potential replacement properties in writing within 45 days. You can identify up to three properties regardless of value (or more under specific rules).
Closing Deadline
You must close on one or more of your identified replacement properties within 180 days of the original sale — or by your tax return due date, whichever comes first.
Qualification Rules
Key Requirements to Qualify
These are the IRS rules that govern every 1031 exchange. Work with your CPA and a qualified intermediary to ensure full compliance.
Like-Kind Property
The replacement property must be "like-kind" to the relinquished property. For real estate, this is broad — you can exchange a single-family rental for a multifamily building, commercial property, or vacant land.
Equal or Greater Value
To defer all capital gains tax, the replacement property must be of equal or greater value than the relinquished property, and all equity must be reinvested.
Qualified Intermediary Required
You cannot take possession of the sale proceeds — ever. A qualified intermediary (QI) holds the funds and transfers them at closing. This is non-negotiable under IRS rules.
Investment or Business Use
Both properties must be held for investment or productive use in a trade or business. Your primary residence does not qualify for a standard 1031 exchange.
This page is for informational purposes only and does not constitute tax or legal advice. Consult a qualified tax professional and a licensed qualified intermediary before initiating a 1031 exchange.
Our Role
How Jordan Helps You Execute the Exchange
The 45-day identification window is brutally short. You need an agent who already knows the available inventory — not one who's starting from scratch when the clock starts.
Jordan works with investors throughout Jefferson County and St. Louis to identify replacement properties that match your criteria before you even list the relinquished property — so you're ready to move the moment your sale closes.
We discuss your current property, target return, and ideal replacement criteria
We identify potential replacement properties before your sale closes
You close on the relinquished property — proceeds go to your QI
We submit your identification letter within the 45-day window
We negotiate and close on your replacement property within 180 days
Planning a 1031 Exchange?
The earlier you start looking for replacement properties, the better position you'll be in when the clock starts. Let's talk.