By Priya Raman, Contributing Writer, Policy & Regulation
A 1031 exchange in 2026 still runs on a 45-day identification window and a 180-day close, still applies to real property only, and still requires a paid qualified intermediary. Every figure below is dated and sourced.
A 1031 exchange completed in 2026 must satisfy a 45-day identification deadline, a 180-day closing deadline, and a real-property-only like-kind test, and it requires a qualified intermediary who typically charges $750 to $1,800 for a standard forward exchange. Nothing about the core mechanics changed for 2026: the Tax Cuts and Jobs Act's real-property-only rule stands, and the One Big Beautiful Bill Act, signed July 4, 2025, left Section 1031 untouched. This page collects the rule set and the published cost data in one place, with the primary source and date named next to every figure, so you can check it yourself rather than take a calculator's word for it.
| Item | 2026 figure | Source (dated) |
|---|---|---|
| Identification deadline | 45 calendar days from closing on the relinquished property, in writing | IRS Fact Sheet FS-2008-18, Feb. 2008; unchanged per IRS.gov like-kind exchange page, reviewed May 1, 2026 |
| Exchange completion deadline | 180 calendar days from closing, or the tax return due date with extensions, whichever is earlier | IRS Fact Sheet FS-2008-18, Feb. 2008; unchanged per IRS.gov like-kind exchange page, reviewed May 1, 2026 |
| Eligible property | Real property held for investment or business use only; personal property has not qualified since Jan. 1, 2018 | IRC Section 1031, as amended by the Tax Cuts and Jobs Act (2017); confirmed unchanged for 2026 by IRS.gov, reviewed May 1, 2026, and by JTC Group's OBBBA analysis (2025) |
| Legislative change for 2026 | None. The One Big Beautiful Bill Act (signed July 4, 2025) did not amend Section 1031 | JTC Group, "How Will the One Big Beautiful Bill Act Affect 1031 Exchanges?" 2025 |
| QI fee, standard forward exchange | $750 to $1,500 (one relinquished, one replacement property) | 1031 Specialists, "Estimating the Costs of a 1031 Exchange," updated June 2026 |
| QI fee, standard forward exchange (alt. source) | $1,100 to $1,800 set-up/admin, plus $200 to $500 per additional property | Exeter 1031 Exchange Services, "1031 Exchange Fees, Costs and Charges," Nov. 12, 2025 |
| QI fee, reverse exchange | $5,000 to $15,000 or more | 1031 Specialists, updated June 2026 |
| QI fee, improvement / build-to-suit exchange | $7,500 to $15,000 or more | 1031 Specialists, updated June 2026; corroborated by Exeter 1031, Nov. 12, 2025 ($7,500 to $15,000 for complex/reverse structures) |
| Depreciation recapture rate | 25% on Section 1250 gain attributable to prior depreciation | IRC Section 1250; model constant used in this site's Depreciation Recapture Calculator |
| Net Investment Income Tax | 3.8% on net investment income above the statutory threshold | IRC Section 1411; model constant used in this site's Capital Gains Tax Calculator |
| 2026 long-term capital gains brackets (single) | 0% to $49,450; 15% to $545,500; 20% above | IRS Revenue Procedure 2025-32, Oct. 2025 |
Full table available as a downloadable CSV.
From the day you close on the relinquished property, you have 45 calendar days to identify replacement property in writing and deliver that identification to a party to the exchange, and 180 calendar days total to close on the replacement. Per IRS Fact Sheet FS-2008-18, notice to your attorney, real estate agent, or accountant does not count as a valid identification; it has to go to someone actually party to the exchange, typically the qualified intermediary. Neither deadline moves for weekends, holidays, or a buyer who is dragging their feet, and the IRS Fact Sheet is explicit that the only exception is a presidentially declared disaster. Model your own dates with the 1031 Timeline Calculator.
Section 1031 has applied only to real property since the Tax Cuts and Jobs Act took effect on January 1, 2018; equipment, vehicles, artwork, and other personal property no longer qualify no matter how "like-kind" the trade looks. The IRS's own like-kind exchange page, last reviewed May 1, 2026, restates this without qualification. The One Big Beautiful Bill Act, the major tax law signed July 4, 2025, did not touch Section 1031 at all, according to JTC Group's 2025 analysis of the bill's real estate provisions. Going into 2026, the rule is unchanged: any real property for any other real property, held for investment or business use, still qualifies as like-kind.
You cannot receive exchange proceeds yourself, even briefly, so every 1031 exchange runs through a qualified intermediary (QI) who holds the funds between closings. Published rate sheets diverge somewhat but land in the same neighborhood: 1031 Specialists (updated June 2026) quotes $750 to $1,500 for a standard forward exchange with one relinquished and one replacement property, while Exeter 1031 Exchange Services (November 12, 2025) quotes $1,100 to $1,800 in set-up and administration fees for the same structure, plus $200 to $500 for each additional property. Both sources agree that reverse exchanges, where you buy the replacement before selling, and improvement exchanges, where exchange funds finance construction, cost substantially more: $5,000 to $25,000 or higher depending on complexity. Anything quoted well under $500 for a standard exchange is worth a second look, and total exchange costs also include title, escrow, and recording fees layered on top of the QI's cut.
Figures on this page come from two kinds of sources. Rule and deadline figures (the 45-day and 180-day windows, the real-property-only limitation, the depreciation recapture rate, and NIIT) are drawn directly from the Internal Revenue Code and IRS-published guidance: IRC Section 1031, IRS Fact Sheet FS-2008-18 (February 2008), the IRS "Like-kind exchanges" real estate tax tips page (last reviewed May 1, 2026), and IRS Revenue Procedure 2025-32 (October 2025) for the 2026 capital gains brackets. Legislative-change confirmation comes from JTC Group's 2025 published analysis of the One Big Beautiful Bill Act's effect on Section 1031. Qualified intermediary fee ranges come from two independently published 2025 to 2026 industry rate breakdowns, 1031 Specialists and Exeter 1031 Exchange Services, cited by name and date next to each figure so you can verify them directly; where the two sources' ranges differ slightly, both are shown rather than averaged. No figure on this page is estimated or generated; anything we could not source to a named, dated publication was left off. This page is reviewed and its dateModified updated whenever the underlying IRS guidance or QI rate data changes materially, and at minimum annually.
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45 calendar days from the closing date of the relinquished property, with the identification in writing and delivered to a party to the exchange. The IRS does not extend this for weekends, holidays, or hardship, per IRS Fact Sheet FS-2008-18.
180 calendar days from the closing date of the relinquished property, or the due date of your tax return for that year including extensions, whichever comes first, per IRS Fact Sheet FS-2008-18.
No. The Tax Cuts and Jobs Act limited Section 1031 to real property starting in 2018, and that limitation is unchanged for 2026. The One Big Beautiful Bill Act, signed July 4, 2025, made no changes to Section 1031.
Published 2025 to 2026 rate sheets put a standard forward exchange QI fee at roughly $750 to $1,800, with reverse and improvement exchanges running $5,000 to $25,000 or more depending on structure. See the source table above.
1031ExchangeCalc, "2026 1031 Exchange Rules & Cost Reference," 2026, https://1031exchangecalc.com/1031-exchange-rules-cost-reference-2026
This page is for educational purposes only and is not tax or legal advice. Consult a qualified intermediary and a tax professional before structuring any exchange.
45 calendar days from the closing date of the relinquished property, with the identification in writing and delivered to a party to the exchange. The IRS does not extend this for weekends, holidays, or hardship, per IRS Fact Sheet FS-2008-18.
180 calendar days from the closing date of the relinquished property, or the due date of your tax return for that year including extensions, whichever comes first, per IRS Fact Sheet FS-2008-18.
No. The Tax Cuts and Jobs Act limited Section 1031 to real property starting in 2018, and that limitation is unchanged for 2026. The One Big Beautiful Bill Act, signed July 4, 2025, made no changes to Section 1031.
Published 2025 to 2026 rate sheets put a standard forward exchange QI fee at roughly $750 to $1,800, with reverse and improvement exchanges running $5,000 to $25,000 or more depending on structure. See the source table above.
Priya covers tax, regulation, and compliance: the quiet rules that decide what you can and cannot do. She reads federal register notices for sport and has made peace with that not being a normal hobby.