Updated November 2026 · VG CPA PC advisors
What qualifies
Since 2018, only real property held for investment or for use in a trade or business qualifies. Most US real estate is like-kind to other US real estate: land for an apartment building, an office for a rental house. Property held primarily for sale, such as flips, does not qualify, and US and foreign real estate are not like-kind.
Your personal residence does not qualify, though a home converted to a rental can, after a holding period that shows investment intent.
The deadlines
You must identify replacement property in writing within 45 days of selling the relinquished property and close on it within 180 days, or by the due date of your tax return including extensions if earlier. The deadlines are not extended for weekends or holidays.
Sale proceeds must be held by a qualified intermediary. If you receive or control the cash, the exchange fails.
Boot, related parties and reverse exchanges
Cash or debt relief you receive that is not reinvested is boot and is taxable. To defer all gain, buy replacement property of equal or greater value and replace the debt paid off.
Exchanges with related parties require both parties to hold the properties for two years. A reverse exchange, buying the replacement before selling, is possible through an exchange accommodation titleholder under specific rules.