To qualify for a 1031 Exchange, Relinquished and Replacement Properties must be qualified as "like-kind," and the transaction must be structured properly. 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. Gain deferred in a like-kind exchange under IRC. Section 1031 is tax-deferred, but it is not tax-free. Essentially, there are three simple steps that you need to follow to complete a 1031 exchange of your real estate investments. California 1031 Exchange rules allow investors to defer capital gains on the sale of qualified property if exchanged for like-kind property. Visit our library of important 1031 exchange forms.