Day 0
Sell
The property transfers and proceeds go directly to the qualified intermediary.
For investment property owners
A clearer 1031 exchange starts before you sell.
Understand the clock, estimate your exchange equity, and evaluate replacement real estate with a team grounded in disciplined property underwriting.
36States with properties*
~$1.6BGross asset value, including debt*
14M+Square feet under management*
* Approximate firm-level metrics as of Q2 2026. Gross asset value includes debt; square footage reflects total area under management. These figures are not investor returns or results for any current or future offering.
Property spotlightLas Vegas industrial · traditional direct TIC ownership
Steptoe Las Vegas TIC
5050 Steptoe Street · Las Vegas, Nevada
An 80,330-square-foot industrial property presented through a traditional tenancy-in-common real estate structure. Each TIC purchaser holds a direct, undivided co-ownership interest in the property; this is not a DST interest.
80,330Square feet
IndustrialProperty type
TICDirect co-ownership
Preliminary real estate information—not a purchase agreement. Availability, ownership percentage, purchase terms, financing, economics, and closing conditions are governed only by the final deed, TIC agreement, purchase documents, and loan documents. Direct TIC ownership may be illiquid and involves real estate risk.
What is a 1031 exchange?
The exchange is the tax process. The replacement property is the investment decision.
Section 1031 may let an owner sell qualifying investment real estate and reinvest in like-kind replacement property while deferring current tax on the exchanged gain.
A qualified intermediary generally must be engaged before closing. The tax rules do not make a weak replacement property strong, so the deadline and underwriting both need to work.
Read the complete 1031 guide →The exchange clock
One sale. Two firm deadlines.
Day 0 starts both periods. Weekends and holidays generally do not extend them.
By Day 45
Identify
Deliver a signed, written identification to a permitted exchange party.
By Day 180
Acquire
Close by Day 180 or the applicable federal tax-return deadline, if earlier.
MAG evaluates the building, tenant, lease, and capital structure together.
Why MAG focuses on industrialExplore the MAG approach
The lease is only as strong as the tenant—and the building behind it.
Many MAG investments begin with a sale-leaseback: an operating company sells its facility and leases it back, freeing capital while maintaining its operations.
01
Facility Is the location critical, functional, and reusable?
02
Tenant & lease Can the business support the rent through a downturn?
03
Capital Do price, leverage, maturity, and reserves reflect the risks?
A conversation, not a call center
Start with your sale, debt, and deadline.
Daniel Castañeda works directly with property owners evaluating 1031 exchange and replacement-property strategies.
MAG does not replace your qualified intermediary, CPA, or attorney. The goal is to organize the real estate and investment questions before the clock gets tight.
A simple $1 million example
See where the money from the sale could go.
Both paths start with the same $1,000,000 sale, $500,000 mortgage payoff, and $60,000 of estimated selling costs. The difference is whether this example pays estimated taxes now or completes a qualifying 1031 exchange.
$1,000,000Sale price
$500,000Mortgage balance to pay off (50%)
$60,000Estimated selling costs (6%)
$350,000Tax basis used for this estimate*
| Where the money goes | Sell without a 1031 exchange — pay estimated taxes now | Complete a qualifying 1031 exchange — estimated taxes postponed* |
|---|---|---|
| Sale price | $1,000,000 | $1,000,000 |
| Pay off the existing mortgage | −$500,000 | −$500,000 |
| Estimated selling costs (6%)* | −$60,000 | −$60,000 |
| Estimated taxes paid now | −$182,420 | No current tax assumed in this example* |
| Estimated money remaining after the sale | $257,580 after estimated taxes | $440,000 held by the qualified intermediary for the replacement purchase |
* Simplified educational illustration, not tax advice. Tax basis is used to estimate taxable gain; this example begins with a $600,000 purchase price and reflects $250,000 of depreciation allowed or allowable. The exchange column assumes the owner completes a qualifying exchange and does not receive cash from the exchange. It also treats the full $60,000 selling-cost allowance as eligible exchange expense. Actual treatment varies by cost, taxpayer, and transaction. Confirm your numbers with a qualified intermediary, CPA, and attorney.
Estimated current taxes postponed in this example$182,420
That amount stays in the exchange for the replacement purchase instead of being paid as estimated current taxes. It is postponed, not forgiven, and may become taxable later. This screen assumes a 20% federal capital-gain rate, a 25% maximum unrecaptured Section 1250 rate, a 3.8% NIIT upper-bound screen, and a 5% state rate. Actual NIIT may be lower or zero, and actual results depend on the taxpayer and transaction.
Common questions
1031 exchange answers in plain English.
Start here, then confirm your transaction with your own tax and legal advisers.
What is a 1031 exchange?
A Section 1031 exchange is a tax-deferral process for qualifying business or investment real estate. When the rules are satisfied, an owner can sell one property and reinvest in like-kind replacement real estate without recognizing the exchanged gain at that time. The tax is deferred, not erased.
When should I start planning?
Before the sale closes. A qualified intermediary generally needs to be engaged before closing, and the 45-day identification and 180-day acquisition periods begin when the relinquished property transfers.
What are the 45-day and 180-day deadlines?
Replacement property generally must be identified in a signed writing within 45 calendar days. It must then be acquired by the earlier of 180 calendar days after the sale or the applicable federal tax-return due date, including extensions.
What does like-kind mean for real estate?
For Section 1031, like-kind is broad within qualifying U.S. real estate. Improved property may generally be exchanged for unimproved property, and different real estate uses may qualify, provided both properties are held for business or investment. Confirm the exact facts with your tax adviser and qualified intermediary.
Do I have to replace my mortgage debt?
For full deferral, investors generally seek to reinvest all net exchange proceeds and replace relieved debt with new debt or additional cash. Cash received or unoffset debt relief may create taxable boot. Your tax adviser should calculate the transaction-specific amount.
How much do I generally need to reinvest?
A common full-deferral objective is to acquire equal-or-greater replacement value, reinvest all net exchange proceeds, and offset relieved debt with replacement debt or additional cash. Transaction costs, debt relief, and cash received can change the taxable result, so obtain a transaction-specific calculation.
Primary educational sourcesIRS Form 8824 Instructions ↗IRS Like-Kind Exchange Guide ↗IRS Publication 544 ↗
Before the sale closes
Put your 1031 exchange team and options in place.
Share your expected sale price and remaining debt. We will help organize the questions to take to your qualified intermediary, tax adviser, and investment team.