Services · 1031 Exchange
1031 Exchange Services for California Investors
Defer capital gains tax and trade up your portfolio, with replacement property lined up early.
Overview
What is a 1031 exchange?
A 1031 exchange lets you sell an investment property and reinvest the proceeds into another like-kind investment property without paying capital gains tax at the time of sale. The rules are strict: you have 45 days from closing to identify replacement properties and 180 days to close.
Wilson coordinates with your qualified intermediary and CPA, sources replacement inventory before your relinquished property closes, and keeps the clock from running out.
Who this is for
Is this service right for you?
Owners sitting on a highly appreciated Bay Area rental
Investors trading up from single-family to multifamily
Landlords tired of management who want passive or triple-net assets
Anyone facing a large capital gains bill on an investment property sale
Investors exchanging California equity into higher-yield out-of-state markets
Our process
How it works, step by step
01
Feasibility review
Whether an exchange makes sense versus an outright sale — with your CPA in the room.
02
Assemble the team
Qualified intermediary, CPA, lender and attorney lined up before you list.
03
Sell the relinquished property
Marketed and timed to give you the longest possible runway.
04
Days 1–45: Identification
We source and vet replacement candidates in parallel with your sale, so identification isn’t a scramble.
05
Days 46–180: Close
Financing, due diligence and closing on the replacement property inside the window.
06
Post-close
Basis-tracking documentation for your CPA and planning for your next exchange.
Why work with us
What sets Wilson apart
We start sourcing before you close
Many exchanges fail because identification starts on day one instead of 30 days before closing.
We work inside your professional team
Your CPA and attorney lead on tax and law. We execute on the real estate.
In-state and out-of-state sourcing
Our network connects you with trusted experts in markets outside California.
FAQ
Frequently asked questions
Have a question that isn’t answered here? Call or text Wilson at (408) 412-9022.
What are the 45-day and 180-day rules?
From the day your relinquished property closes, you have 45 calendar days to identify replacement properties in writing and 180 calendar days to close on them. The deadlines run at the same time, are not extended for weekends or holidays, and the 180 days can be cut short by your tax return due date unless you file an extension.
What property qualifies for a 1031 exchange?
Both properties must be held for investment or business use. Most U.S. real estate is like-kind to other U.S. real estate — a rental house can be exchanged for an apartment building, land or a triple-net commercial property. A primary residence or property held mainly for resale does not qualify.
Do I need a qualified intermediary?
Yes. To defer the tax, you cannot receive the sale proceeds. A qualified intermediary holds the funds and handles the exchange documents. The intermediary must be engaged before your relinquished property closes.
Can I do a 1031 exchange from California into another state?
Yes. California allows exchanges into out-of-state property, but it tracks the deferred California gain and requires an annual information return (FTB Form 3840) until the replacement property is sold. Your CPA will handle the filing.
What is boot in a 1031 exchange?
Boot is any cash or non-like-kind value you receive, including a reduction in mortgage debt that isn’t replaced. Boot is taxable. To defer all of the gain, you generally need to buy property of equal or greater value and reinvest all of the net proceeds.
Disclaimer
Wilson Lau (DRE #02217494) is a REALTOR® with Keller Williams Silicon City (Broker DRE #01965355), not a tax or legal advisor. 1031 exchanges require a qualified intermediary and should be structured with your CPA and attorney. Nothing on this page is tax or legal advice.
Related services
Planning an exchange? Start before you list.
Book a 1031 Strategy Call