metonic's 1031 exchange program

Metonic is the region’s leader in 1031 Exchanges. Section 1031 of the Internal Revenue Code allows investors to sell real property, reinvest the proceeds in a new property and defer all capital gain taxes in connection with the original sale.


Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), taxpayers may defer the payment of capital gains and related federal income taxes on the exchange of certain types of real property.  The exchanged property is sold and the profits realized from the sale are reinvested to acquire “like kind” replacement properties.


There are several requirements to be eligible to participate in a 1031 exchange:

1. The purchase price of the replacement property must be equal to or greater than the sales price of the exchanged property. The entire amount of equity received from the sale of the exchanged property must be utilized in the purchase of the replacement property.

2. The exchanged and replacement properties must both be located within the United States and held for investment purposes. 

3. Proceeds received in connection with the sale must be held by a qualified intermediary (QI) and the seller cannot touch or control the funds. 

4. The QI documents must be signed prior to the closing of the sale of the exchanged property.

time frame

In addition to qualifying parameters, there are specified time periods that restrict the process. 

1. The identification of the replacement property must be completed in writing within 45 days after the closing of the sale of the exchanged property.

2. The purchase of the replacement property must be completed within 180 days after the closing of the sale of the exchanged property.

metonic’s role

Metonic can assist investors with potential 1031 exchanges by:

1. Assisting with the identification of replacement property

2. Identifying and working with qualified intermediaries to complete 1031 transactions

3. Ensuring compliance with all 1031 timing requirements

4. Completing acquisitions of replacement properties

5. Overseeing the operations and management of the qualified replacement property

6. Providing non-recourse guaranties where possible