Investment Property, Not PersonalProperty must be for business or investment. You canu2019t use your primary residence in a 1031 exchange.Properties Must Be u201cLike-Kindu201d Investment property for investment property. Like-kind doesnu2019t have anything to do with the quality, location or use of the two properties.Short Fuse45 days from the date of sale to identify potential replacement properties and a total of 180 days (including the 45 day ID period) to purchase at lease one of the identified properties. No extensions.You Need A Qualified Intermediary Donu2019t touch or use your proceeds, other than to purchase another property. Tax code requires use of a u201cqualified intermediaryu201d to holds your money in escrow until you are ready to purchase another property.Buy A Property That Costs At Least As Much As the One You SoldReinvest All the Cash: Any cash not reinvested from the sale of your property will be taxable.Same Size or Bigger Mortgage: In order to defer 100% of taxes, the amount of the mortgage on the property you purchase needs to be equal or greater than the mortgage on the property you sell. If the mortgage on your new property is less than the mortgage paid off on your old property, you will owe taxes on the difference.Taxes Are Deferred, Not Eliminated The money you would have to pay in taxes gets reinvested in a new property. However, when property purchased through an exchange is sold, you will owe the taxesu2014unless you do another 1031 exchange.