Missing Your 1031 Deadline: What Happens

Missing the 45-day identification window doesn't just delay your exchange — it ends it. The sale becomes a standard taxable transaction, and the full capital gains tax bill comes due, often 20-30% of the gain depending on your situation.

 

This is the outcome JJ Gorena of The Trey Group works to help San Antonio-area investors avoid entirely. His approach centers on timing: getting a 1031 exchange expert and the required paperwork in place before a property goes on the market, rather than after. "A lot of investors call me 10 days before they're about to close," Gorena notes. "That's way too late." While an exchange can sometimes still be salvaged that late, it becomes unnecessarily stressful for the investor, the intermediary, and both sides' agents.

 

For investors anywhere from Alamo Heights to Fair Oaks Ranch to Fredericksburg, the lesson is the same: plan the exchange before you list, not after you've already accepted an offer.

 

Getting Started

If you own investment property and expect to sell within the next year, the right time to start planning a 1031 exchange is now, not after you've accepted an offer. Watch Episode 1 of "1031 Exchange, Explained" for a full walkthrough of the identification period.

Watch Episode 1 of "1031 Exchange, Explained": https://youtu.be/Kmbth-XiI50 

Schedule a consultation with JJ Gorena: https://calendly.com/treygroupcommercial/15min

JJ Gorena, The Trey Group Phone: 210-367-6024 Email: homes@thetreygroup.com