Industrial & warehouse
Small-bay and distribution buildings, often on NNN leases with low management intensity. Warehouses for sale →
Investor Guide
1031 Exchanges in Las Vegas: Rules, Deadlines & Replacement Property
Sell investment real estate, buy more, and defer the tax — if you hit two hard deadlines. How a 1031 exchange works, and how to land the right Las Vegas replacement property in time.
Quick answer
A 1031 exchange (Internal Revenue Code Section 1031) lets an investor sell real property held for investment or business use and reinvest the proceeds in other like-kind real property while deferring federal capital gains tax. The sale proceeds go to a qualified intermediary, never to you; replacement property must be identified in writing within 45 days and acquired within 180 days (or by your tax-return due date, if earlier). Nevada has no state income tax, but federal rules still apply, and investors exchanging out of California must keep filing California’s FTB 3840. Milvado Realty helps investors price the sale, source and underwrite Las Vegas replacement property, and close inside the deadlines. This is general information, not tax advice — confirm your plan with a CPA and your intermediary.
By Moshe Botnick, Broker · Updated October 2026
The Clock
The 1031 Exchange Timeline
Two deadlines run at the same time from the day your sale closes. Neither one is extended for weekends or holidays.
| When | What must happen | Why it matters |
|---|---|---|
| Before you list | Engage a qualified intermediary (QI) and sign the exchange agreement before the sale closes | If sale proceeds reach you, even briefly, the exchange generally fails |
| Day 0 | Relinquished property closes; proceeds go directly to the QI | Both the 45- and 180-day clocks start |
| By day 45 | Identify replacement property in writing, signed and delivered to the QI | Use an address or legal description; late or vague identification doesn’t count |
| By day 180 | Close on the replacement property (or by your tax-return due date, with extensions, if earlier) | The 180 days include the 45-day period, not in addition to it |
| Tax filing | Report the exchange on IRS Form 8824 (and FTB 3840 for California-sourced gain) | Deferral is claimed and tracked on your return |
The Rules
What Qualifies — and What Doesn’t
Like-kind means real property for real property
Since 2018, only real property qualifies. Almost any investment or business real estate can be exchanged for almost any other: a California rental house for a Las Vegas warehouse, a strip center for a fourplex, raw land for a medical office building. Your primary residence doesn’t qualify (it has its own exclusion), and neither does property held mainly to resell, such as a quick fix-and-flip.
Identification rules
You can identify up to three properties of any value, or more than three as long as their combined value is no more than 200% of what you sold. Exceed both and you generally must acquire 95% of the value identified. Most investors name a primary target plus backups in case a deal falls apart.
Full deferral: trade equal or up, and reinvest everything
To defer all of the gain, buy replacement property of equal or greater value and reinvest all net proceeds. Cash you keep, or debt you don’t replace, is “boot” and is generally taxable. The same taxpayer that sold must buy, and transactions with related parties have extra restrictions.
Replacement Property
Where Las Vegas Exchange Buyers Look
The 45-day window is the real risk. We start sourcing before your sale closes so you identify properties that are already underwritten.
Multifamily
Duplexes and fourplexes through larger apartment buildings, with value-add upside where rents trail the market. Multifamily →
Retail & single-tenant NNN
Neighborhood centers and single-tenant buildings where tenants pay taxes, insurance, and maintenance. Retail real estate →
Office & medical office
Professional and medical buildings with stable, credit-oriented tenants. Medical office →
Single-family & condo rentals
Smaller exchanges often land in Las Vegas rental homes or townhomes. Buying a rental →
Land
Raw and entitled land qualifies too, though it produces no income while you hold it. Commercial sales →
Nevada & California
The State-Tax Angle
Nevada has no personal income tax, so it doesn’t tax your gain when you eventually sell Nevada property. Federal tax still applies, which is why the exchange matters.
Exchanging out of California? California tracks the gain you deferred on California property. If your replacement property is outside the state, you generally must file Form FTB 3840 every year until that gain is recognized, even after you move to Nevada. If you later sell the Nevada property in a taxable sale, California can tax the deferred California-source gain. Plan this with a CPA before you list.
- Broker opinion of value before you sell
- Replacement properties sourced and underwritten early
- Contracts timed around your 45- and 180-day dates
- Commercial and multifamily management after you close
1031 FAQ
1031 Exchange Questions
A 1031 exchange, named for Section 1031 of the Internal Revenue Code, lets you sell real property held for investment or business use and buy other like-kind real property while deferring federal capital gains tax. The proceeds are held by a qualified intermediary between the sale and the purchase.
From the day your sale closes, you have 45 days to identify replacement property in writing and 180 days to close on it, or until your tax-return due date (including extensions) if that comes first. The 180 days include the first 45, and neither deadline is extended for weekends or holidays.
Yes. Real property in one state is like-kind to real property in another. California generally requires you to file Form FTB 3840 each year until the deferred California-source gain is recognized, so coordinate with a CPA before you sell.
Nevada has no personal income tax, so it does not tax capital gains on a sale. Federal capital gains tax and depreciation recapture still apply unless you defer them, for example through a 1031 exchange.
Yes, if you hold it as an investment. Single-family rentals, condos, and small multifamily all qualify as replacement property, as long as the property is held for investment or business use rather than as your residence.
No. A home you live in as your primary residence isn’t investment property. It may qualify for the separate home-sale exclusion under Section 121 instead; ask your tax advisor.
Sources
Primary Sources
- IRS — Instructions for Form 8824, Like-Kind Exchanges
- IRS — Publication 544, Sales and Other Dispositions of Assets
- California Franchise Tax Board — Reporting like-kind exchanges (FTB 3840)
This guide is general information, not tax or legal advice. Milvado Realty is a real estate brokerage; we work alongside your CPA, attorney, and qualified intermediary, who should confirm how the rules apply to you.
1031 Exchange
Don’t let the 45-day clock pick your property for you.
Start sourcing replacement property before you sell — we’ll line up and underwrite options early.