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 · potential TIC structure
Steptoe Las Vegas TIC
5050 Steptoe Street · Las Vegas, Nevada
An 80,330-square-foot industrial property under review for a potential tenancy-in-common ownership strategy. The property thesis centers on industrial functionality and active lease execution—not a promise of passive or guaranteed income.
80,330Square feet
IndustrialProperty type
TICPotential structure
Preliminary property information only—not an offer or solicitation. Availability, ownership structure, investor eligibility, financing, economics, and terms may change and are governed only by final approved documents. TIC ownership may be illiquid and involves risk, including possible loss of principal.
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 hypothetical $1 million sale
What could remain after the mortgage, costs, and estimated current taxes?
This $1 million example uses a 50% mortgage payoff and one consistent 6% potentially eligible exchange-expense assumption. It compares modeled no-exchange taxes with proceeds that may remain in a fully qualifying exchange—not tax elimination.
$1,000,000Expected sale
$500,000Mortgage payoff
$350,000Adjusted basis
$250,000Allowed or allowable depreciation
| Line item | Sell and pay estimated taxes | Illustrative qualifying exchange* |
|---|---|---|
| Expected sale price | $1,000,000 | $1,000,000 |
| Mortgage payoff | −$500,000 | −$500,000 |
| Estimated eligible disposition/exchange expenses | −$60,000 | −$60,000 |
| Estimated current federal, NIIT, and state taxes | −$182,420 | Potentially postponed if fully qualifying* |
| Estimated proceeds after the items above | $257,580 | $440,000 held through the QI |
* A fully qualifying exchange may postpone recognition of gain; it does not erase the gain or guarantee that no tax is currently due. Cash received, debt relief, costs, taxpayer facts, and other transaction details can change the result. This example treats the full 6% allowance as eligible exchange expense; actual closing-statement treatment must be confirmed with the qualified intermediary and tax adviser.
Illustrative no-exchange current tax exposure$182,420
Assumes a 20% federal capital-gain rate, a 25% maximum unrecaptured Section 1250 rate, a 3.8% NIIT upper-bound screen applied to all modeled gain, and a 5% state rate. Actual NIIT may be lower or zero. Basis, recognized gain, rates, state conformity, debt relief, and tax treatment 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.