We facilitate and support 1031 Exchanges of investment properties for tax deferral and to maximize investment dollars. A 1031 tax deferred exchange is a great way to transfer property without paying a capital gains tax.Allison McCloskey can walk you through the process. 1031 Exchanges must be completed within 180 days. Taxpayers recognize gain and pay tax on any unused funds or when they ultimately "cash out" of their property. Here is an example of a sale of real property under a Land Contract with a 1031 Exchange. A San Diego 1031 exchange is a way to replace one real estate investment property for another while postponing your capital gains taxes. This 1031 Exchange Checklist is intended to provide a brief overview of the steps involved in an IRC Section 1031 taxdeferred exchange. Let's say you're at day 170 of your 180 day 1031 exchange period and you don't have your new replacement property lined up and ready to go. Investors can defer capital gains taxes on California real estate investment sales through IRC Section 1031.