Section 1231 gains — the capital-gain-style gains that arise when a business sells depreciable property or real property held for more than a year — are a meaningful source of Opportunity Zone investment, but they come with technical timing and netting rules that trip up the unwary. Unlike a simple stock or real-estate sale, a §1231 gain isn't fully understood until year-end, when all of a taxpayer's §1231 gains and losses are netted together; only the resulting net 1231 gain is treated as capital gain that can fund a Qualified Opportunity Fund (QOF) investment. The ordinary-income piece — depreciation recapture taxed under §1245 — does not qualify. And the 180-day clock for a net 1231 gain has evolved, historically tied to year-end but later given more flexibility. This guide explains what §1231 gains are, how the netting works, when the 180-day window runs, the common mistakes, and how to plan the reinvestment. This is educational information for business sellers, not tax advice — the §1231 rules are technical and time-sensitive, so verify the current rules and your specific facts with your CPA.
What are Section 1231 gains?
Section 1231 gains arise when a business sells (or exchanges) depreciable property or real property used in a trade or business and held for more than one year. Common examples include selling a commercial building, business equipment, machinery, or land used in the business — assets that are neither pure capital assets (like stock) nor ordinary inventory. So §1231 governs the gains and losses on this distinctive category of business-use property.
Section 1231 is favorable because of its hybrid character: a net §1231 gain is generally treated as long-term capital gain (taxed at favorable rates), while a net §1231 loss is treated as an ordinary loss (deductible against ordinary income). This 'best of both worlds' treatment is why §1231 matters — and it's the capital-gain character of a net §1231 gain that makes it eligible to fund an Opportunity Zone investment.
So §1231 gains come from selling depreciable business or real property held more than a year, and a net §1231 gain is treated as long-term capital gain — the character that opens the door to an OZ. What are Section 1231 gains? Gains from selling depreciable business or real property (buildings, equipment, business land) held over one year, where a net §1231 gain is treated as long-term capital gain (and a net loss as ordinary). This capital-gain character makes a net §1231 gain OZ-eligible. Understanding §1231 frames the OZ opportunity for business sellers. Section 1231 gains arise from selling depreciable business or real property held more than a year, and a net §1231 gain is treated as capital gain — making it eligible to fund a QOF, unlike ordinary income.
Netting rules for 1231
The defining feature of §1231 — and the source of much of its complexity for OZ planning — is that §1231 gains and losses are netted together at year-end. You don't evaluate each §1231 sale in isolation; instead, all of your §1231 gains and losses for the year are combined, and only the result determines the character. If §1231 gains exceed §1231 losses, you have a net §1231 gain (treated as long-term capital gain). If losses exceed gains, you have a net §1231 loss (ordinary).
For Opportunity Zone purposes, this matters enormously: only the net 1231 gain is the capital gain eligible to invest in a QOF. If you have a $500,000 §1231 gain on one sale but a $200,000 §1231 loss on another, your net §1231 gain — and the OZ-eligible amount — is $300,000, not $500,000. So you can't simply look at a single profitable sale; you must net across all your §1231 activity for the year to know the eligible amount.
So the netting rules mean the OZ-eligible figure is the net §1231 gain after combining all your §1231 gains and losses — which often isn't known until year-end. Netting rules for 1231 — combining all of a taxpayer's §1231 gains and losses for the year, with only the resulting net §1231 gain treated as capital gain (and thus OZ-eligible), while a net §1231 loss is ordinary — are central to OZ planning. The eligible amount is the net, not a single gain. Understanding netting shows why the amount and timing are technical. Section 1231 gains and losses are netted at year-end, and only the net §1231 gain is the capital gain eligible for an OZ — so the eligible amount depends on your full-year §1231 activity, not a single sale.
Because of this netting, a §1231 gain is fundamentally different from a stock or simple real-estate gain for OZ timing: its character (and amount) isn't final until the year's §1231 picture is complete. This is why the §1231/OZ intersection requires a CPA's involvement — the netting determines both how much is eligible and, historically, when the clock could start.
A Section 1231 gain isn't truly known until year-end, when all your 1231 gains and losses net against each other — only the net gain is the capital gain that can fund an Opportunity Zone investment.
The 180-day clock for 1231 gains
The 180-day window — the period to invest a capital gain into a QOF — applies to net §1231 gains, but how the clock runs for a §1231 gain has evolved and is more technical than for a simple sale. Because §1231 gains and losses are netted at year-end, the net §1231 gain historically wasn't determinable until December 31, so early guidance treated the 180-day clock for a net §1231 gain as starting at year-end (the last day of the tax year), giving until roughly late June of the following year to invest.
Later guidance, however, provided more flexibility — allowing, in some cases, the 180 days to run from the date of the §1231 sale itself (the realization date) rather than waiting for year-end. This evolution means a §1231 investor may have more than one possible start date depending on the applicable rules and their facts, and the treatment has shifted over time as Treasury and the IRS refined the regulations.
So the 180-day clock for a net §1231 gain has historically tied to year-end (because netting happens then) but has been given flexibility to potentially run from the sale date — a technical, evolving area. The 180-day clock for 1231 gains — historically starting at year-end (December 31) because §1231 netting happens then, but later given flexibility to potentially run from the sale date under refined guidance — is more technical and evolving than the clock for a simple sale. The applicable start date depends on current rules and your facts. Understanding the clock shows why timing must be confirmed. The 180-day clock for a net §1231 gain has historically started at year-end (when netting occurs) but later guidance allowed it to potentially run from the sale date — an evolving, technical question to confirm with your CPA under the current rules.
Common timing mistakes
Several common mistakes arise when investing §1231 gains in an OZ. The first is investing a §1231 gain before netting losses — committing the full gross §1231 gain to a QOF before accounting for offsetting §1231 losses elsewhere in the year, only to find the actual net §1231 gain (the eligible amount) is smaller. Over-investing relative to the true eligible amount can create complications, because only the net §1231 gain qualifies for OZ treatment.
A second common mistake is mistiming the 180-day clock — either assuming the clock starts at the sale date when year-end applies, or assuming year-end when the sale-date start is available (and thus missing an earlier deadline or investing outside the window). Because the §1231 clock has evolved and offers potential flexibility, getting the start date wrong is a real risk. A third mistake is treating ordinary-income recapture as eligible — assuming the full proceeds qualify when the §1245 depreciation-recapture portion (taxed as ordinary income) does not.
So the common §1231/OZ mistakes — investing before netting, mistiming the clock, and misclassifying recapture — all stem from the technical nature of §1231 and underscore the need for CPA guidance. Common timing mistakes — investing a §1231 gain before netting losses (over-investing relative to the net), mistiming the 180-day clock (year-end vs. sale date), and treating ordinary-income recapture (§1245) as eligible when only the net capital-gain portion qualifies — are the recurring §1231/OZ errors. They stem from §1231's technical netting and timing. Understanding them shows where to be careful. The common §1231/OZ mistakes are investing before netting losses, mistiming the 180-day clock, and counting ordinary-income recapture as eligible — all avoidable by confirming the net §1231 gain, the start date, and the eligible character with your CPA.
- Only the net §1231 gain (after netting all year's §1231 gains and losses) is the capital gain eligible to invest in a QOF — not a single gross gain.
- Ordinary-income recapture (e.g., §1245 depreciation recapture taxed as ordinary income) does not qualify — only the net capital-gain portion can fund an OZ.
- The 180-day clock for a net §1231 gain has historically started at year-end (because netting happens then) but later guidance allowed potential flexibility to run from the sale date — confirm the current rule.
- Avoid the common mistakes — investing before netting, mistiming the clock, and misclassifying recapture — by confirming the eligible amount, start date, and character with your CPA; this is technical and evolving, so verify current rules.
Planning the reinvestment
Planning the reinvestment of a §1231 gain into a QOF starts with confirming the eligible amount: work with your CPA to net your §1231 gains and losses for the year and identify the net §1231 gain (and to separate any ordinary-income recapture, which doesn't qualify). Knowing the true eligible amount prevents over- or under-investing and clarifies how much you can deploy into an OZ.
Next, confirm the applicable 180-day start date under the current rules — whether the clock runs from year-end or potentially from the sale date for your facts — so you know your deadline and can line up a suitable QOF in advance. Because the §1231 clock is technical and evolving, this confirmation should come from your CPA, not from assumptions or outdated articles. With the amount and deadline established, you can select and fund a suitable QOF within the window.
So planning a §1231 reinvestment means confirming the net eligible gain, the applicable deadline, and lining up a suitable QOF — all coordinated with your CPA. Planning the reinvestment — confirming the net §1231 gain (the eligible amount, separating ordinary recapture), establishing the applicable 180-day start date under current rules, and lining up a suitable QOF in advance — is how to invest a §1231 gain correctly. It requires CPA coordination given the technical rules. Understanding the planning steps shows how to execute. Plan a §1231 reinvestment by confirming the net eligible gain (excluding ordinary recapture), establishing the applicable 180-day deadline, and selecting a suitable QOF in advance — coordinating with your CPA on the technical, evolving rules.
Why this matters for business sellers
Section 1231 gains matter for OZ planning because they're common among the business owners and real-estate operators who are prime OZ candidates. When a business sells its building, equipment, or operating real estate, the resulting net §1231 gain can be substantial — and, as capital gain, it can fund an OZ investment that defers the tax and potentially grows tax-free over a 10-year hold. So §1231 gains are a frequent on-ramp to OZ investing for the business community.
But the technical netting and timing rules mean the §1231/OZ path requires more care than a straightforward stock or property sale. Misunderstanding the net-gain requirement, the recapture exclusion, or the clock can cost a business seller the benefits or create compliance issues. So while §1231 gains open a valuable OZ door, walking through it correctly demands attention to the rules.
So §1231 gains are a meaningful, common source of OZ-eligible capital for business sellers — valuable, but technical enough to warrant professional guidance. Why this matters for business sellers — §1231 gains being common when a business sells its building, equipment, or operating real estate, providing substantial capital-gain amounts that can fund an OZ, but with technical netting and timing rules requiring care — makes the §1231/OZ path both valuable and demanding. It's a frequent OZ on-ramp for business owners. Understanding why it matters shows the relevance. Section 1231 gains are a common, valuable source of OZ-eligible capital for business sellers, but the technical netting and timing rules make professional guidance essential to capture the benefits correctly.
How Baker 1031 helps with 1231 gains
Baker 1031 Investments helps business sellers and real-estate operators with Section 1231 gains understand how the Opportunity Zone path works — what §1231 gains are, why only the net §1231 gain is eligible, how the 180-day clock applies, and how to plan the reinvestment — so you can defer (and potentially grow tax-free) a net §1231 gain by investing it in a suitable QOF.
QOF interests and related securities are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review (OZ investments are typically suitable for accredited investors). Baker 1031 does not provide tax or legal advice — the §1231 netting, the ordinary-income recapture treatment, and the applicable 180-day start date are technical and evolving, and your CPA must confirm your eligible amount, character, and deadline. Our role is to help you understand the §1231/OZ opportunity and access suitable funds within your window, coordinating with your CPA on the technical rules. Section 1231 gains are a common, valuable OZ on-ramp for business sellers, and we help you understand the path and invest the net eligible gain in a suitable QOF — educational information only, with the tax determinations left to your CPA, and always verifying the current rules given how technical and evolving this area is.
Frequently Asked Questions
What is a Section 1231 gain?
A Section 1231 gain arises when a business sells (or exchanges) depreciable property or real property used in a trade or business and held for more than one year — for example, selling a commercial building, business equipment, machinery, or business-use land. Section 1231 gives this category a favorable hybrid treatment: a net §1231 gain is generally treated as long-term capital gain (taxed at favorable rates), while a net §1231 loss is treated as an ordinary loss (deductible against ordinary income). It's the capital-gain character of a net §1231 gain that makes it eligible to fund an Opportunity Zone investment. So a §1231 gain is the gain on business-use depreciable or real property held over a year, and its net capital-gain character is what opens the door to an OZ. This is educational information — your CPA confirms the §1231 treatment for your specific assets and sales.
Can I invest a Section 1231 gain in an Opportunity Zone?
Generally yes, but only the net §1231 gain qualifies. Because a net §1231 gain is treated as long-term capital gain, that capital-gain amount can be invested in a Qualified Opportunity Fund within the applicable 180-day window to defer it and earn the OZ benefits (deferral, and potential tax-free growth after a 10-year hold). However, the eligible amount is the net §1231 gain — the result of netting all your §1231 gains and losses for the year — not a single gross gain, and the ordinary-income recapture portion (such as §1245 depreciation recapture) does not qualify. So a §1231 gain can fund an OZ investment, but you must determine the net §1231 capital gain (excluding ordinary recapture) with your CPA. This is technical and time-sensitive — verify the current rules and your specific eligible amount with your tax advisor before investing.
Why is only the net 1231 gain eligible?
Because Section 1231 requires that all of your §1231 gains and losses for the year be netted together, and only the result determines the character. If §1231 gains exceed §1231 losses, you have a net §1231 gain (treated as long-term capital gain); if losses exceed gains, you have a net §1231 loss (ordinary). For OZ purposes, only the capital gain qualifies — and that's the net §1231 gain after combining all your §1231 activity. So if you had a $500,000 §1231 gain on one sale and a $200,000 §1231 loss on another, your net §1231 gain (and the OZ-eligible amount) is $300,000, not $500,000. This is why you can't simply look at a single profitable sale — the netting determines the eligible amount. Your CPA performs this netting to confirm how much is eligible to invest in a QOF; verify the current rules for your situation.
When does the 180-day clock start for a 1231 gain?
This is technical and has evolved. Because §1231 gains and losses are netted at year-end, the net §1231 gain historically wasn't determinable until December 31, so early guidance treated the 180-day clock for a net §1231 gain as starting at year-end (the last day of the tax year), giving roughly until late June of the following year to invest. Later guidance, however, provided more flexibility — allowing, in some cases, the 180 days to run from the date of the §1231 sale itself (the realization date) rather than waiting for year-end. So a §1231 investor may have more than one possible start date depending on the applicable rules and facts, and the treatment has shifted as the regulations were refined. This is an evolving, technical area — confirm the applicable start date and your deadline with your CPA under the current rules, rather than relying on assumptions.
Does depreciation recapture qualify for an OZ?
No — ordinary-income recapture does not qualify for OZ investment. When you sell depreciable property, a portion of the gain may be recaptured as ordinary income — for example, §1245 depreciation recapture on personal property is taxed as ordinary income, not capital gain. Only capital gains can be invested in a QOF, so the ordinary-income recapture portion is excluded; only the net §1231 capital-gain portion qualifies. This is a common point of confusion — the full sale proceeds (or even the full gain) are not all OZ-eligible if part is ordinary-income recapture. So when planning a §1231 reinvestment, your CPA separates the ordinary-income recapture (which is taxed and not eligible) from the net §1231 capital gain (which can fund an OZ). Confirm the character breakdown of your specific sale with your tax advisor, as this is technical and fact-specific.
What's the difference between a 1231 gain and depreciation recapture?
They're different pieces of the tax picture on a sale of depreciable property. Depreciation recapture (such as §1245 recapture) re-characterizes part of the gain as ordinary income — essentially recovering the benefit of prior depreciation deductions — and is taxed at ordinary rates. The remaining gain (after recapture) on §1231 property held over a year flows into the §1231 netting and, if a net §1231 gain results, is treated as long-term capital gain. For OZ purposes, the ordinary-income recapture does not qualify, while the net §1231 capital gain can be invested in a QOF. So recapture is the ordinary-income piece (not OZ-eligible), and the net §1231 gain is the capital-gain piece (OZ-eligible). Your CPA determines how much of your sale is recapture (ordinary) versus net §1231 gain (capital) — a technical, fact-specific determination to confirm before investing in an OZ.
What is the most common mistake with 1231 gains and OZs?
A very common mistake is investing a §1231 gain before netting losses — committing the full gross §1231 gain to a QOF before accounting for offsetting §1231 losses elsewhere in the year, only to discover the actual net §1231 gain (the eligible amount) is smaller. Because only the net §1231 gain qualifies, over-investing relative to the true eligible amount can create complications. Other common mistakes include mistiming the 180-day clock (assuming the sale-date start when year-end applies, or vice versa) and treating ordinary-income recapture as eligible when it isn't. So the recurring errors stem from §1231's technical netting, evolving timing, and the recapture distinction. The fix is to confirm the net §1231 gain, the applicable start date, and the eligible character with your CPA before investing — don't assume the full gross gain is eligible or that the clock starts where you expect. Verify the current rules for your facts.
Do I have to wait until year-end to invest a 1231 gain?
Not necessarily — it depends on the applicable rules and your facts. Historically, because §1231 netting happens at year-end, the 180-day clock for a net §1231 gain was treated as starting at year-end, which effectively meant waiting until the year's §1231 picture was complete. Later guidance, however, allowed more flexibility, potentially letting the 180 days run from the §1231 sale date in some cases. So you may not always have to wait until year-end, but you also need to be careful — if the sale-date start applies, an earlier deadline may govern. Because this is technical and evolving, confirm with your CPA whether the year-end or sale-date start applies to your situation, and plan your QOF investment accordingly. Don't assume either start date without confirmation — getting it wrong risks missing the window or investing outside it. Verify the current rules.
How do I know how much of my gain is OZ-eligible?
Your CPA determines this by netting all of your §1231 gains and losses for the year to arrive at the net §1231 gain, and by separating any ordinary-income recapture (such as §1245 recapture), which doesn't qualify. The OZ-eligible amount is the net §1231 capital gain — not the gross gain on a single sale, and not any ordinary-income portion. So the eligible figure depends on your full-year §1231 activity and the character breakdown of your sales, which is why it often isn't final until year-end and requires professional calculation. So work with your CPA to establish the net §1231 gain (the eligible amount) before deciding how much to invest in a QOF, to avoid over-investing or counting ineligible amounts. This is a technical, fact-specific determination — verify your eligible amount with your tax advisor under the current rules before funding an OZ investment.
Can I use an OZ for a building sold by my business?
Often yes, for the net capital-gain portion. When your business sells a building (real property used in the trade or business and held over a year), the gain is generally a §1231 gain, and a resulting net §1231 gain is treated as long-term capital gain — which can be invested in a QOF to defer it and earn the OZ benefits. However, only the net §1231 capital gain qualifies; any ordinary-income recapture is excluded, and the net is determined after combining all your §1231 activity for the year. So a business building sale is a common §1231/OZ scenario, but you must confirm the net eligible capital gain (and the applicable 180-day start) with your CPA. So yes, an OZ can often receive the net capital gain from a business building sale — verify the eligible amount, character, and timing with your tax advisor, as the §1231 rules are technical and evolving.
How does the 1231/OZ path compare to a 1031 exchange?
They're different strategies. A 1031 exchange defers tax on the sale of real property by reinvesting in like-kind real property — it can apply to business real estate (including §1231 real property) but requires a like-kind real-estate replacement and specific 45/180-day deadlines, and it generally defers the full gain (including recapture) when fully reinvested. An OZ, by contrast, accepts the net §1231 capital gain (not ordinary recapture) and invests it in a QOF, offering deferral plus potential tax-free growth after a 10-year hold, but only for the capital-gain portion. So for a §1231 real-property sale, you might consider a 1031 (like-kind real estate, defers more including recapture) or an OZ (net capital gain into a QOF, with the 10-year exclusion). The choice depends on your goals, the asset type, and the amounts — discuss both with your CPA. This is educational; the comparison for your facts requires professional analysis.
Is investing 1231 gains in an OZ a good idea?
It can be, for the right business seller — a net §1231 gain that's treated as capital gain can fund an OZ investment that defers the tax and potentially grows tax-free over a 10-year hold, which is valuable for a substantial gain. But whether it's a good idea depends on the investment's merits (the OZ fund, project, sponsor, and your risk tolerance), the OZ's illiquidity and long hold, and the technical §1231 rules being handled correctly. The tax benefits are only valuable if the underlying investment performs, and OZ investments carry real risk. So investing a §1231 gain in an OZ can be a sound strategy when the eligible amount is confirmed, the timing is right, and the investment is suitable — but it's not automatically right for everyone. Evaluate the investment on its merits, confirm the §1231 details with your CPA, and ensure suitability — this is educational information, not a recommendation.
Does the OZ program's permanence affect 1231 gains?
The 2025 legislation (often called OZ 2.0) made the Opportunity Zone program permanent and changed some timing mechanics (a rolling 5-year deferral for post-2026 investments, a new zone map effective January 1, 2027, with the current map running through 2028), but the core principle that a net §1231 capital gain is OZ-eligible (while ordinary recapture is not) reflects the capital-gain character requirement that has been consistent. The §1231 netting and the 180-day timing nuances are technical areas that have evolved through guidance and could continue to be refined. So while the program is now permanent, the §1231-specific rules (netting, the applicable 180-day start, recapture exclusion) remain technical and worth confirming under the current guidance. So verify both the general OZ rules and the §1231-specific treatment with your CPA, given the program's recent changes and the technical nature of §1231 — relying on outdated information is risky in this evolving area.
Should I plan my 1231 reinvestment in advance?
Yes — advance planning is especially valuable for §1231 gains because of their technical rules. Start by working with your CPA to estimate your net §1231 gain (the eligible amount) and to identify the applicable 180-day start date under the current rules (year-end or potentially the sale date for your facts). Knowing the eligible amount and deadline lets you line up a suitable QOF in advance, rather than scrambling. Because the §1231 netting may not be final until year-end and the clock is technical, planning ahead reduces the risk of over-investing, mistiming the window, or counting ineligible recapture. So plan your §1231 reinvestment in advance — confirm the net eligible gain, the deadline, and a suitable QOF with your CPA and advisor — to execute correctly within the window. The technical, evolving nature of §1231 makes advance planning and professional coordination particularly important here.
How does Baker 1031 help with 1231 gains?
We help business sellers and real-estate operators with Section 1231 gains understand how the Opportunity Zone path works — what §1231 gains are, why only the net §1231 gain is eligible, how the 180-day clock applies, and how to plan the reinvestment — so you can defer (and potentially grow tax-free) a net §1231 gain in a suitable QOF. QOF interests are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), after a suitability review (typically for accredited investors). Baker 1031 does not provide tax or legal advice — the §1231 netting, the ordinary-income recapture treatment, and the applicable 180-day start are technical and evolving, and your CPA confirms your eligible amount, character, and deadline. We help you understand the §1231/OZ opportunity and access suitable funds within your window, coordinating with your CPA. This is educational information only — verify the current rules with your tax advisor.
Glossary
- Section 1231 Property
- Depreciable or real property used in a trade or business, held over a year.
- Section 1231 Gain
- Gain on §1231 property; a net §1231 gain is treated as capital gain.
- Net 1231 Gain
- The result after netting all §1231 gains and losses (OZ-eligible).
- Net 1231 Loss
- When §1231 losses exceed gains; treated as ordinary loss.
- Netting
- Combining all §1231 gains and losses for the year at year-end.
- Depreciation Recapture
- Re-characterizing part of the gain as ordinary income.
- Section 1245 Recapture
- Recapture on personal property, taxed as ordinary income.
- Ordinary Income
- Income taxed at ordinary rates; not OZ-eligible.
- Capital Gain
- The character that makes a net §1231 gain OZ-eligible.
- 180-Day Window
- The period to invest a gain into a QOF.
- Year-End Start
- Historic §1231 clock start (December 31) due to netting.
- Sale-Date Start
- Flexibility allowing the clock to run from the sale date.
- QOF
- Qualified Opportunity Fund, the OZ investment vehicle.
- Deferral
- Postponing the net §1231 gain's tax via the OZ.
- 10-Year Exclusion
- Tax-free appreciation after a 10-year QOF hold.
- Eligible Amount
- The net §1231 capital gain that can fund a QOF.
Sources & References
- IRS. Opportunity Zones Frequently Asked Questions
- Cornell Legal Information Institute. 26 U.S. Code § 1400Z-2 — Special rules for capital gains invested in opportunity zones
- IRS. Topic No. 409, Capital Gains and Losses
- IRS. About Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments
Disclosures
This article is published by Baker 1031 Investments, LLC for general educational purposes for accredited investors and is not an offer to sell or a solicitation of an offer to buy any security, nor is it tax, legal, accounting, or investment advice or a recommendation. Any securities offering is made solely through a sponsor’s private placement memorandum (PPM) following a suitability determination. Securities offered through Aurora Securities, Inc. (ASI), member FINRA / SIPC; Baker 1031 Investments is independent of ASI.
Oil & gas mineral and royalty interests and DST programs are speculative, illiquid securities sold only to verified accredited investors and involve substantial risk, including possible loss of principal, commodity-price and production-decline risk, lack of control, and the risk that an intended 1031 exchange fails to qualify for tax deferral. Whether a particular interest qualifies as like-kind real property is a fact-specific legal determination that varies by state and by the terms of the instrument. Tax results depend on your individual circumstances. Consult your own CPA and attorney before acting. Past performance does not guarantee future results.
