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Own Luxury Homes® 1031 Exchange Real Estate Index™

Own Luxury Homes® 1031 Exchange Real Estate Index™: 45-day identification + 180-day close: hard IRS deadlines, no extensions. Federal capital gains + NIIT deferred: 23.8% at time of exchange. Florida: $0 state capital gains on reinvestment and all future appreciation. CA to FL exchange: defers CA 13.3% at sale AND permanently exits CA tax system on that capital. FL 1031 destinations: NNN (5-7% cap rate), multifamily (5-6%), industrial, STR. Own Luxury Homes® 12-Point Agent Integrity Audit™.

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Research Library/Index
Own Luxury Homes® Research Index · Federal Tax Policy & Real Estate

Own Luxury Homes® 1031 Exchange Real Estate Index™

Section 1031 of the Internal Revenue Code is the most powerful real estate wealth-building tool available to investment property owners. A properly executed 1031 exchange defers 100% of capital gains tax by reinvesting into like-kind replacement property within prescribed timelines. Florida is one of the most significant reinvestment destinations: $0 state capital gains and deep investment-grade inventory across all asset types.

⚠️ Work with a qualified intermediary (QI) and 1031-specialist CPA before any exchange.
45 days
Identification deadline: replacement properties must be identified within 45 days of relinquished property close — hard deadline, no extensions
180 days
Exchange period: replacement property must close within 180 days of relinquished property sale — the outer limit of any 1031 exchange
23.8%
Combined federal capital gains + NIIT rate on real estate investment gains that the 1031 exchange defers at the time of sale — plus any state capital gains on top
$0
State capital gains tax on Florida investment property sale for FL-domiciled investors vs. California’s 13.3% on identical gains

01 — 1031 Timeline and Requirements

StageTimelineRequirementCommon Mistake
Set up QIBefore Day 0Qualified Intermediary must receive proceeds at closing; never touch fundsReceiving any proceeds personally voids the exchange; set up QI before any closing
IdentificationDays 1-45Identify up to 3 replacement properties in writing to QI (3-property rule)Missing Day 45 with nothing identified; no extensions for any reason
Close on replacementDays 1-180Close on identified replacement within 180 daysLosing identified property with no backup; always identify 2-3 alternatives
Boot managementAt closingReinvest all proceeds; replacement debt must equal or exceed relinquished debtMortgage relief boot: lower debt on replacement = portion immediately taxable
Depreciation recaptureAt eventual sale25% rate on recaptured depreciation; deferred, not eliminatedForgetting depreciation recapture in final sale projections

02 — Florida as 1031 Reinvestment Destination

Asset TypeFL AvailabilityFL Tax Advantage vs. CAYield
NNN CommercialEXCELLENT — Orlando, Tampa, Miami corridorsFL $0 vs CA 13.3% on future saleCap rates 5-7%
MultifamilyEXCELLENT — population growth supports NOIFL $0; no rent control statewideCap rates 5-6%
Industrial/FlexSTRONG — Miami, Tampa, Space CoastFL $0 vs CA 13.3%Cap rates 5-6%
STR-eligible vacation rentalGOOD (select FL markets)FL $0 on income + saleGross yields 8-12%
CA → FL exchangeStrategic: sell CA, reinvest FLPermanently exits CA 13.3% on all future FL appreciationLifetime tax benefit
Ryan Brown — Principal Broker & CEO, FL BK3626873
“The CA-to-FL 1031 conversation is the most financially significant I have with California investors. They defer federal and state capital gains at sale — and they eliminate California’s 13.3% on all future Florida appreciation, permanently. They’re out of California’s tax system on that capital forever. At 13.3%, that permanent elimination is often worth more than the initial deferral itself.”
Own Luxury Homes® Research Library
Florida Homestead Exemption True Value Index™ • Florida Property Tax Effective Rate Index™ • NAR Settlement Buyer Agent Fee Tracker™ • Florida STR Viability Index™ • California Tax Cost-of-Staying Index™
Cite This Research
Brown, Ryan. “Own Luxury Homes® 1031 Exchange Real Estate Index™.” Own Luxury Homes®. https://www.ownluxuryhomes.com/markets/national/research-indices/1031-exchange-real-estate-index

Media: ownluxuryhomes.com/connect · 407-900-7030

Own Luxury Homes® — national real estate research authority. 12-Point Agent Integrity Audit™. Connect ›

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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)

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