Short answer: Fernando Castro of Casanova Realty Group, brokered by eXp Realty, helps investors buy Las Vegas, North Las Vegas and Henderson replacement properties in a 1031 exchange. He handles the real estate side, from finding and running the numbers on rentals to keeping the purchase on schedule, and works alongside your qualified intermediary and CPA, who handle the exchange and the tax questions.
This article is general information, not tax or legal advice. Talk to a CPA or tax attorney and a qualified intermediary before you sell.
What a 1031 exchange is
Section 1031 lets you defer the gain when you exchange property held for business or investment for like-kind property. The IRS notes that the gain is deferred, not forgiven: it carries into the new property and can be taxed when you later sell outside an exchange. Exchanges are reported on IRS Form 8824 with your tax return for the year of the exchange (IRS fact sheet FS-2008-18).
The 45-day and 180-day deadlines
According to the IRS, in a deferred exchange you must meet two time limits or the entire gain becomes taxable:
- 45 days: from the date you sell the property you give up, you have 45 days to identify potential replacement properties. The identification must be in writing, signed by you and delivered to someone involved in the exchange, such as the qualified intermediary or the seller of the replacement property. Telling your own real estate agent, attorney or accountant does not count.
- 180 days: you must receive the replacement property and complete the exchange within 180 days of the sale, or by the due date (with extensions) of your tax return for that year, whichever is earlier.
The IRS says these limits cannot be extended for any hardship except presidentially declared disasters. In practice, that means your Las Vegas search should start before your current property closes, so you can identify real options inside the 45 days.
Why your realtor cannot be your qualified intermediary
The IRS warns that taking control of the sale proceeds before the exchange is complete can disqualify the whole exchange. A qualified intermediary usually holds the funds to prevent that. You cannot act as your own facilitator, and neither can your agent, including your real estate agent or broker, accountant, attorney or anyone who worked for you in those roles in the previous two years. So Fernando does not hold your funds. He finds and negotiates the replacement property while an independent intermediary handles the exchange.
California owners moving equity into Nevada rentals
Many investors sell a California rental and buy in the Las Vegas valley. The IRS rules above apply because both properties are U.S. real estate. California adds its own requirement: the California Franchise Tax Board's Form FTB 3840 is filed by taxpayers who exchange California property for property outside California, and the FTB requires it in the year of the exchange and in later years while the gain stays deferred. How that affects you is a question for your CPA. Fernando's part is the Nevada side: helping you pick replacement rentals in Las Vegas, North Las Vegas or Henderson that fit your numbers and your deadlines.
How Fernando helps on the real estate side
- Shortlisting rentals before your sale closes, so the 45-day list has real options
- Running rent, HOA, insurance and repair numbers on each property
- Writing offers and keeping inspections, appraisal and closing on the 180-day schedule
- Coordinating dates with your qualified intermediary, lender and title company
Fernando invests in real estate himself and is a Navy veteran (Chief Petty Officer, about 20 years) and VA Loan Specialist. He is a buyer's agent: he does not buy houses, lend money or give tax advice. See the Las Vegas real estate investors page for rentals, BRRRR and house hacking, or the VA loan and military home buying guide, Nellis AFB and Creech AFB pages if you are buying a home to live in.
Frequently asked questions
Can a realtor be my qualified intermediary in a 1031 exchange?
No. The IRS says your agent, including your real estate agent or broker, accountant, attorney, employee or anyone who has worked for you in those roles within the previous two years, cannot act as your facilitator. You also cannot act as your own. Fernando handles the real estate side, and an independent qualified intermediary holds the sale proceeds.
What counts as like-kind property in a 1031 exchange?
The IRS says like-kind property is property of the same nature, character or class, and most real estate is like-kind to other real estate. For example, a residential rental house is like-kind to vacant land. Property inside the United States is not like-kind to property outside it, and the property must be held for business or investment use, not as your personal home.
Can I use a 1031 exchange to buy a rental near Nellis AFB?
Yes, if the home is held as an investment rental and the exchange meets the IRS rules, including the 45-day identification and 180-day closing deadlines. A 1031 replacement property cannot be your own home. If you plan to live in the home, a VA loan with its owner-occupancy rule is a separate path. Confirm your plan with your CPA and qualified intermediary.
Planning an exchange into Las Vegas? Call or text Fernando at (702) 530-5370 or email [email protected], Monday to Sunday, 9 AM to 7 PM.
Not tax or legal advice. Casanova Realty Group and eXp Realty are not qualified intermediaries. Consult a CPA or tax attorney and a qualified intermediary about your exchange.
