Q4 Planning for 1031 Exchanges: Maximize Tax Benefits Before Year-End

As the year begins to come to a close, many investors start thinking about tax planning and how to best position their portfolios for the year ahead. For those considering a property sale, Q4 can be one of the most important times to take action with a 1031 exchange. Here’s why early Q4 1031 exchange planning can set you up for success:

Deadlines Don’t Pause for the Holidays

A 1031 exchange gives you 45 days to identify replacement property and 180 days to close. When you’re working with a late-year sale, those deadlines overlap with Thanksgiving, year-end holidays, and tax season. That can make an already tight process even more stressful. Starting your exchange in Q4—before the holiday crunch—keeps you on track and avoids unnecessary pressure.

Use Year-End Planning to Your Advantage

Q4 is also when CPAs and advisors are running year-end projections. For many investors, this is when unexpected gains or tax liabilities show up. Putting a 1031 in place now can help you manage those liabilities before they’re locked in. Aligning your exchange with your CPA’s strategy ensures your tax picture looks stronger heading into the new year.

Position Your Portfolio for 2026

The end of the year often brings motivated sellers, portfolio reshuffling, and unique buying opportunities. In some cases, investors may also explore bonus depreciation or cost segregation studies on their replacement properties. While these strategies aren’t applicable to every deal, when they do line up, they can add another layer of tax efficiency on top of a 1031 exchange. It’s a conversation worth having with your CPA if you’re looking to maximize tax benefits.

Don’t Wait Until It’s Too Late

The biggest mistake investors make is waiting until after a sale closes to think about a 1031. At that point, the opportunity is gone. Getting your Qualified Intermediary involved before closing keeps your options open and gives you the best chance to execute a successful exchange.

Final Takeaway - Q4 1031 Exchange Planning

Q4 isn’t just another quarter—it’s your last chance to set up a 1031 exchange for this tax year, align with your CPA’s strategy, and start the new year in a stronger position. If you’re considering selling, don’t wait until December. Now is the time to get your plan in motion.

Our team at APX 1031 is here to guide you every step of the way—say hello to start the conversation today.