How long do I have to complete a 1031 exchange?

You have 45 calendar days from the sale of your relinquished property to identify replacement properties (in writing to your QI), and 180 calendar days to close on the replacement property. These deadlines are strict—missing them disqualifies the entire exchange.

Can I do a 1031 exchange on a rental property in Indiana?

Yes, any property held for investment or business use qualifies. This includes single-family rentals, multi-family buildings, commercial properties, and land. Your primary residence does not qualify. The property must have been held for investment (typically 1+ year) and not be for immediate resale.

What happens if I can't find a replacement property in time?

If you fail to identify properties within 45 days or close within 180 days, the exchange fails and you'll owe capital gains taxes on the sale. To mitigate this risk, identify multiple backup properties (up to 3, or unlimited if under 200% of sale value) and have financing pre-approved.

Can I exchange into a property in another state?

Yes, 1031 exchanges work across state lines. You can sell a property in California and purchase in Indianapolis. However, you may still owe state taxes in the original state depending on their laws. Indiana does not have clawback provisions for 1031 exchanges.

1031 Exchange Guide for Indiana Real Estate Investors: Defer Taxes Legally | Leaseway Property Management Blog

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1031 Exchange Guide for Indiana Real Estate Investors: Defer Taxes Legally

Leaseway Team

Property Management Experts

January 18, 202611 min read

Financial documents showing 1031 exchange real estate tax strategy

Article Summary

Master the art of tax-deferred property exchanges to grow your Indiana portfolio faster. Step-by-step guide with real examples and common pitfalls to avoid.

Published: January 18, 2026

The 1031 exchange remains one of the most powerful wealth-building tools available to real estate investors...

Sources & References

IRS Section 1031 Like-Kind Exchange Guidelines
Federation of Exchange Accommodators
Indiana Department of Revenue - Capital Gains

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Leaseway TeamProperty Management Experts

The Leaseway Team brings together decades of combined experience in Indianapolis property management, real estate investing, and landlord-tenant relations. Our experts are dedicated to helping property owners maximize their investments.

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