1031 Exchange in California
Defer your capital-gains tax on California investment real estate — with a Qualified Intermediary who walks you through it one easy step at a time.
We operate in California. You can start your exchange online today.
A 1031 exchange (named for Section 1031 of the Internal Revenue Code) lets an owner of California investment or business real estate sell one property and reinvest the proceeds into another “like-kind” property while deferring the federal capital-gains tax that a plain sale would trigger. The replacement property does not have to be in California — like-kind is broad, and an exchange can cross state lines.
The catch is the money can never touch your hands. To keep the deferral, the sale proceeds must be held by a Qualified Intermediary (QI) — a neutral third party — from the moment your California property closes until your replacement purchase closes. That is the role we play. We hold your proceeds in FDIC-insured escrow, track both IRS clocks, and release the funds to close your next property.
The two deadlines
45 days — identify
From the day your California sale closes (Day 0), you have 45 calendar days to identify your replacement property (or properties) in writing. No extensions, weekends and holidays included.
180 days — close
You then have 180 calendar days from the same closing to buy one of the properties you identified — or your tax-return due date for that year, whichever is earlier. File an extension if your sale is late in the year.
Both clocks start at the same moment — your relinquished-property closing — and the QI must be in place before that closing. Use the calculator below to see your exact dates.
45 & 180-day deadlines
Both clocks start the day your sale closes.
Pick a closing date to see your two deadlines and a timeline.
California rules
California is the most consequential state for a 1031 exchange. It regulates exchange facilitators directly, and — separately — it "claws back" California-source gain you defer into out-of-state property, which you must report every year on FTB Form 3840 until the gain is finally recognized.
- Exchange-facilitator conduct standards (California Civil Code §1031.5): a facilitator must either maintain a fidelity bond, or hold exchange funds in a qualified escrow or trust account, and must act as a prudent investor and not commingle exchange funds.
- FTB clawback (Rev. & Tax. Code §18032): if you defer California-source gain into replacement property outside California, you must file FTB Form 3840 with your California return for the year of the exchange and every year afterward, until the deferred gain is recognized or the property passes at death.
- Miss the annual Form 3840 filing and the FTB can estimate and assess the deferred California tax. This is the single most common surprise for Californians doing an out-of-state exchange.
- A failed exchange in California is also subject to state real-estate withholding (Form 593) — see the deadline explainer below and consult your CPA.
Reference: Cal. Civ. Code §1031.5; Cal. Rev. & Tax. Code §18032 (FTB Form 3840).
State rules change. Confirm the current requirements for your situation with a California CPA or tax attorney before you rely on any of this.
Start your California exchange
We hold your proceeds in FDIC-insured escrow, track both deadlines for you, and walk you through every step.
This tool is a workflow and record-keeping aid for administering IRC §1031 like-kind exchanges. It is not legal or tax advice, and it does not determine whether any specific transaction qualifies for like-kind exchange treatment. Deadlines, gain estimates, and compliance flags shown here are calculated from the data entered and known simplifying assumptions - they require review by a qualified CPA or tax attorney before being relied upon.