Rules & Timelines – IPX1031

What Is a 1031 Exchange in California

IPX1031 provides an in-depth guide to navigating 1031 Exchanges in California, offering valuable insights into tax-deferral benefits, regulations, and effective strategies for real estate investment.

1031 Exchange Rules in California

Investors can defer capital gains taxes on California real estate investment sales through IRC Section 1031. 1031 Exchanges are federally recognized, and California adheres to federal rules, regulations, and timelines, enabling investors to defer capital gains on qualified property exchanges.

California offers diverse investment opportunities for tax deferral, including properties like short-term rental vacation properties, retail spaces, mixed-use developments, and more. If you’re exploring a California 1031 Exchange, consult with the experts at IPX1031 for guidance and support.

If you own California real estate and are planning on deferring taxes when you sell your investment by purchasing property in another State via a 1031 Exchange, be aware of the California Clawback. Learn more about it here.

What is a 1031 Exchange

1031 Exchanges in California empower investors to sell investment property, reinvest proceeds in new investment property, and defer capital gain and other taxes, provided all rules and regulations are followed.

To minimize capital gain taxes in any California exchange, investors should strive to: 1) purchase property of equal or greater value, 2) reinvest all equity in the Replacement Property, and 3) secure equal or greater debt on the Replacement Property.

Types of Properties that Qualify for a 1031 Exchange in California

To qualify for a 1031 Exchange, Relinquished and Replacement Properties must be qualified as “like-kind,” and the transaction must be structured properly. “Like-kind” properties must be real property held for productive use in the investor’s trade or business or for investment.

Popular like-kind property options in California include hotels, storage facilities, rental vacation properties, nursing homes, strip malls, golf courses, office buildings, and parking lots.

Hotels & Hospitality




Rental & Vacation Homes


Mixed Use


How to Do a 1031 Exchange of Property in California

Executing a 1031 Exchange in California, like anywhere else, demands meticulous planning, expertise, and support. Here’s a checklist outlining key steps in your exchange:

  1. Choose your 1031 Qualified Intermediary (QI) – IPX1031, as your Qualified Intermediary (QI), will prepare the documentation for the 1031 Exchange, and most importantly, safeguard your exchange funds
  2. Consult with your tax professionals
  3. Include Cooperation Clause language in your purchase and sale agreement
  4. IPX1031, your QI, prepares your exchange documents
  5. Start searching for Replacement Property
  6. Sign all documents IPX1031, your QI, prepares
  7. Sell your Relinquished Property
  8. Identify your Replacement Property
  9. Enter into contract on Replacement Property
  10. Contact IPX1031, your QI, once Replacement Property escrow is opened
  11. Close on Replacement Property
  12. IPX1031, your QI, transfers funds to complete your purchase
  13. Your exchange is complete

Get Started on Your 1031 Exchange In Northern California

Get Started on Your 1031 Exchange in Southern California

Get Started on Your 1031 Reverse Exchange In Northern California

Get Started on Your 1031 Reverse Exchange in Southern California

1031 Exchange California Timeline

For your 1031 Exchange in California, here’s what you need to know about the timeline process, deadlines, and other requirements:


  • Property must be held for investment
  • Buy Replacement Property for equal or greater than sold for, reinvest all proceeds and replace the value of the debt
  • Identify Replacement Property within 45 days of close of sale
  • Purchase Replacement Property within 180 days of close of sale
  • Must sell and buy property that is considered “like-kind” to each other
  • Process must be handled by a Qualified Intermediary (QI) like IPX1031

Selecting a Qualified 1031 Exchange Intermediary in California

IPX1031 is your trusted California Qualified Intermediary, serving California and providing Qualified Intermediary services nationwide. Your choice of Qualified Intermediary is crucial for your exchange’s success, focusing on factors like the safety and security of exchange funds and the competence of staff.

IPX1031 offers financial assurances, security for fund transfers, and a strong reputation, ensuring a smooth exchange process. Remember that individuals disqualified from acting as Qualified Intermediaries include those who have served as your employee, attorney, accountant, investment banker or broker, or real estate agent or broker within the two-year period before the Relinquished Property transfer date.

Additionally, Qualified Intermediaries cannot offer tax or legal advice, so always consult with your legal and tax advisors for personalized guidance.

IPX1031 collaborates with your team of advisors to ensure seamless exchanges.


Tax Advisors


Financial Planners

Commercial Brokers


Title/Escrow/Settlement Agents


IPX1031 Exchange Offices in Northern California.

PH: (415) 291-5181   TF (866) 228-1031
FX: (415) 896-9422

1735 Technology Drive Suite 830, San Jose CA 95110
455 Market St., Ste 1520, San Francisco, CA 94105
471 Century Park Drive, Suite B, Yuba City, CA 95991

IPX1031 Exchange Offices in Southern & Central California.

PH: (949) 622-4949   TF (800) 327-5347
FAX:  (949) 477-6806

4400 MacArthur Blvd, Suite 320, Newport Beach, CA 92660
2121 Palomar Airport Rd, Suite 330, Carlsbad, CA 92009
320 W. Foothill Blvd, Suite B, Monrovia, CA 91016
3700 State St, Suite 100, Santa Barbara, CA 93105

Learn more about each of our California Exchange experts below:

Greg Burns

Greg Burns

Southern and Central California.

With over 20 years of experience, Greg is an expert in Delayed, Simultaneous, Reverse and Improvement Exchanges and provides nationwide services to his clients.

read more
James Callejas, CES®

James Callejas, CES®

Bay Area, Central Valley – Northern California

James has learned about 1031 Exchanges from the bottom-up, starting with documenting the process in accordance with IRS regulations all the way to running seminars and educating audiences.

read more
Jordan Phillips

Jordan Phillips

San Diego and Orange County.

Jordan Phillips, VP at IPX1031, offers strategic 1031 real estate exchange strategies and qualified intermediary services throughout San Diego and Orange County.

read more
Ron Ricard, CES®

Ron Ricard, CES®

Silicon Valley, Monterey Bay, Fresno – Northern California

Ron is designated as a Certified Exchange Specialist®, one of fewer than 110 people nationwide who has earned that certification as accredited by the Federation of Exchange Accommodators.

read more
Russell Marsan

Russell Marsan

Sacramento Valley, Tahoe, Wine Country, Redding and Northern Counties – Northern California, Northern Nevada, Idaho and Montana

Russell believes that advanced client education is the key to success, giving 1,000s of entertaining seminars and lectures to attorneys, CPAs, REALTORS, commercial brokers, and investors.

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Ross Fong and James Callejas

Ross Fong and James Callejas

San Francisco Bay Area

Certified Exchange Specialists (CES®) Ross Fong and James Callejas provide the most comprehensive 1031 knowledge, tools, and solutions that the 1031 industry can offer within the San Francisco Bay area.

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Stephen Decker

Stephen Decker

Western Region Sales Manager. ‘SoCal, Washington, Alaska’

Stephen is responsible for business cultivation and development nationwide and is an expert in all types of exchanges, including: Delayed, Simultaneous, Reverse, and Build-to-Suit

read more

Let's Talk About Your Specific California 1031 Needs

Customized solutions for your 1031 investment and business goals.

Is there an IPX1031 office in California near me?

IPX1031, the national leader in 1031 Exchange QI services, is pleased to offer service in all cities, counties, and areas throughout California, including:

San Francisco Bay Area

San Jose

Silicon Valley

Redwood Empire

Sacramento Area

Napa Wine Country





Monterey Bay Area

Santa Cruz


San Joaquin Valley

El Dorado


San Benito

Santa Clara

Santa Cruz

San Mateo









Del Norte






Contra Costa







Lake Colusa




Los Angeles

San Diego



Long Beach





Santa Ana

Chula Vista

San Bernardino


Santa Clarita

Moreno Valley



Huntington Beach



Rancho Cucamonga


Garden Grove











Santa Clara

Simi Valley

Thousand Oaks




Santa Maria


Costa Mesa

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