Section 1031 remains fully intact for real property in 2026, and no legislation currently in Congress removes or caps it. Earlier proposals to limit deferral to 500,000 dollars per year did not make it into the recent tax reconciliation package. The rules are unchanged, meaning you still have 45 days to identify a replacement property and 180 days to close, and you still need a qualified intermediary to hold the proceeds. Since Florida has no state income tax, a 1031 exchange here defers federal capital gains and depreciation recapture only, which still adds up to a meaningful amount on an appreciated investment property.
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