Understanding 1031

Selling investment property like farmland doesn’t have to mean a big tax bill.

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Under 1031

Selling investment property like farmland doesn’t have to mean a big tax bill. With a properly structured 1031 Exchange, you can defer capital gains taxes and keep your equity working for you—whether you're reinvesting in better land, relocating, or diversifying your portfolio.

This comprehensive guide demystifies the Section 1031 Tax-Free Exchange, giving you the tools and timelines to preserve your profits and optimize your next purchase. Whether you’re exchanging Iowa farmland for other cropland, ranches, rental properties, or even investment-grade real estate, the IRS considers nearly all income-producing real estate “like-kind.”

You’ll learn about the three most common exchange types:

  • Delayed Exchange – Sell first, buy later (within 180 days).
  • Reverse Exchange – Buy first, sell later, with the help of an exchange accommodation titleholder (EAT).
  • Improvement Exchange – Use sale proceeds to build or improve new land you’re acquiring.

Also included is a clear breakdown of IRS rules and timelines, such as:

  • 45-Day Identification Window – You must identify your replacement property(ies) within 45 days.
  • 180-Day Closing Rule – You must close on the new property within 180 days of selling your original asset.

You’ll also discover practical strategies for:

  • Consolidating multiple properties into one for easier management
  • Diversifying into multiple income-producing tracts
  • Relocating investment holdings closer to home
  • Passing on stepped-up basis properties to heirs without triggering capital gains

Plus, we’ve included the Three Property Rule, 200% Rule, and 95% Rule to help you correctly identify your exchange properties—and avoid invalidating the transaction.

Keep in mind: to qualify for a 1031 Exchange, you must work with a qualified intermediary (not yourself, your agent, or your CPA). We’ll help connect you with the right professionals to execute a seamless, secure exchange.

Your equity should work harder, not shrink under tax pressure. Download the guide today and explore how to keep more of what you’ve earned—and reinvest it into land that builds your future.