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Can You Do a 1031 Exchange on Vacant Land?
Yes. Vacant land you hold as an investment or use in a business generally qualifies for a 1031 exchange, and it can be traded for almost any other investment real estate: more land, a rental house, a commercial building or the other way around. The rules are strict on timing and paperwork, though, and land you bought mainly to resell quickly may not qualify. Here is how it works when you sell land.
- Who qualifies, in plain words
- The 45- and 180-day clocks
- No commission, no closing costs
- Written offer within 24 hours
- Close in as little as 14 to 30 days
- We close on your exchange timeline
★★★★★ 4.9 from 14 verified Google reviews — read them · we buy with our own capital and pay all closing costs
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Landowners thinking about deferring tax on a sale
What a 1031 exchange does
Section 1031 of the Internal Revenue Code lets you defer federal tax on the gain when you sell investment or business real estate and reinvest the proceeds in other investment or business real estate. The tax is not forgiven; it is carried forward into the new property, and it can come due when you eventually sell without exchanging again. Many states follow the federal treatment for their own income tax, but not all, so check your state.
Since 2018, only real property qualifies, and “like-kind” is broad for real estate. Vacant land can be exchanged for improved property, and improved property for land, as long as both are held for investment or business use in the United States.
Does your vacant land qualify?
The question is why you hold the land. Land bought and kept as an investment, rented to a farmer, leased for hunting or timber, or used in your business usually qualifies. Land you bought mainly to subdivide and sell off, or to flip quickly, may be treated as inventory held for sale, which does not qualify. A lot you hold for your own future home is personal use, not investment.
Inherited land is often a good candidate, and it may already carry a stepped-up tax basis that shrinks the gain; see capital gains on inherited land. How long you held the land and how you used it are facts your tax adviser will weigh, so talk to a CPA or tax attorney before you list.
The deadlines and the middleman
Two clocks start the day your land sale closes. You have 45 days to identify, in writing, the replacement property or properties you might buy, and 180 days to close on what you buy, counting from the same day. The 180 days can be shorter if your tax return comes due first and you do not extend it. These deadlines are very hard to change, so most people line up replacement options before they sell.
You also cannot touch the money in between. A qualified intermediary, sometimes called an exchange accommodator, has to be hired before your closing; the sale proceeds go to them, and they use the money to buy the replacement property. If the proceeds reach you, even briefly, the exchange generally fails.
Mistakes that cost sellers money
The common ones: hiring the intermediary after closing; missing the 45-day identification; buying a replacement worth less than what you sold, or taking some cash out, which leaves taxable “boot”; paying off a mortgage on the old land without replacing that debt or cash on the new property; and assuming land held for resale qualifies when it may not.
Exchanges with family members and other related parties have extra holding rules, and depreciation recapture applies differently to land and buildings. None of this is a reason to avoid an exchange, but it is a reason to plan it with a professional instead of improvising after the sale. If you are weighing the plain tax bill instead, see capital gains tax on a land sale.
Selling your land to us as part of an exchange
A 1031 exchange depends on a sale that actually closes, on a date you can plan around. We buy land for cash, so there is no buyer loan to fall through. Tell us at the start that you plan to exchange: your intermediary handles the exchange paperwork, the sale proceeds go to them at closing, and we can set the closing date to fit your replacement plans.
We send a written offer within 24 hours, there is no commission, we pay the closing costs, and we can close in as little as 14 to 30 days, or later if your exchange needs more time.
Why exchange sellers like a cash buyer
Certain closing
Cash purchase, no buyer loan contingency.
Your timeline
We set the closing date around your exchange.
As-is
No survey or clearing needed first.
No commission
More of the price goes into your exchange.
Fast
Written offer within 24 hours.
No obligation
Use our number in your planning.
Selling to us, step by step
Three steps, no obligation at any point, and no cost to you at any stage.
One call or one form
Tell us the address or APN and the rough size. You do not need a survey, a plat or the tax bill in front of you — we look all of that up.
We value it properly
We research the parcel ourselves, at our cost, before we quote. We price it off recent sales of similar acreage and adjust for access, soil, flood mapping, timber and shape. No cost to you, no commitment.
Written offer, your decision
You have our number in writing within 24 hours. If you take it, a licensed title company closes it and we cover the standard closing costs — typically 14 to 30 days.
Selling to us vs. listing it
Both are legitimate. Listing can bring a higher gross price if you have time, the tract is easy to finance and you can carry the taxes while it sits. Here is the honest comparison.
| Selling to Dreamify | Listing with an agent | |
|---|---|---|
| Who you are dealing with | A direct cash buyer — we are the ones purchasing | An agent marketing it to someone else |
| Commission | None | Typically 6–10% on land |
| Closing costs | We cover them | Usually split or seller-paid |
| Repairs, survey, clean-up | Not your problem | Often requested by retail buyers |
| Financing risk | None — cash | Land loans fall through often |
| Timeline | As little as 14 to 30 days once title work is back | Land can sit on the market for months |
Land we buy
Land we buy
- Vacant, raw and bare land
- Inherited and heir property, including multiple owners
- Land with back taxes or a delinquent tax bill
- Out-of-state and absentee-owned parcels
- Farm, timber and hunting acreage
- Small residential lots and infill parcels
- Landlocked tracts and parcels with access questions
- Land that failed a perc test
- Tracts tied up in an estate or probate
- Property you inherited and have never seen
- Mobile home parks and RV parks
- Self-storage facilities — considered case by case
What we don’t buy
- Houses and other residential buildings
- Land you do not have the authority to sell
- Parcels where a co-owner has not agreed to sell
- Property already under contract with someone else
If we are not the right buyer for your parcel we will say so on the first call rather than waste your time.
We buy with our own money — here is what we have closed
We are a principal buyer using our own capital, not a lead broker collecting details to sell on. A sample of tracts we have bought and closed:
| Tract | Where we closed it |
|---|---|
| 32.3 acres | Perquimans County, North Carolina |
| 72 acres | Pike County, Mississippi |
| 10.7 acres | Morgan County, Georgia |
| 6.24 acres | Jasper County, Georgia |
| 8.5 acres | Pike County, Mississippi |
| 5.05 acres | Dawson County, Georgia |
A sample of tracts we have bought and closed ourselves. We are a principal buyer, not a broker — every one of these was purchased with our own funds through a licensed closing agent.
What sellers say
Every quote below is a real, verified Google review of Dreamify Properties — 4.9 stars across 14 reviews.
“John, the ops manager, was very professional and attentive to detail in ensuring that our transaction was successfully completed. The communication, updates and follow up was excellent. Highly recommend.”
“I had a great experience working with John and Dreamify on the marketing and sale of land in Georgia. John was reasonable, fair, and thorough throughout the transaction, and was very pleasant to work with.”
Questions we get asked
Can you do a 1031 exchange on vacant land?
Yes, if the land is held for investment or business use, not mainly for resale or personal use.
Can I exchange land for a rental house?
Generally yes. U.S. investment real estate of any type is like-kind to other investment real estate.
What are the 1031 exchange deadlines?
45 days to identify replacement property and 180 days to close, both counted from your sale.
Do I need a qualified intermediary?
Yes. Hire one before closing; if you receive the sale money, the exchange generally fails.
How fast can you close?
We give a written offer within 24 hours and can close in as little as 14 to 30 days. If your timeline is longer, we close on the date that suits you.
What does it cost me to sell to you?
Nothing. No commission, no closing costs, no document fees. We buy with our own capital and pay the closing costs ourselves.
Find out what your land is worth to a cash buyer
Send the parcel details and we’ll research the property, answer your questions, and put a clear no-obligation offer in writing within 24 hours.
Life changes — more guides for sellers
Divorce, a move, a loss in the family, care costs, retirement or a parcel that turned into a headache. Whatever is behind the decision to sell, here is how we handle it.
- Divorce
- Relocating
- Loss of a spouse
- Paying off debt
- Bankruptcy
- Bought sight unseen
- Squatters or dumping
- Code violations
- Land that won't sell
- Buyer backed out
- Co-owner
- Owned by an LLC
- Nursing home costs
- Medical bills
- Job loss
- Retirement
- Storm damage
- Never built on
- Old mobile home on it
- Down payment on a house
- Sell or leave to kids
- Power of attorney
- Paying for college
- Farm or hunting lease
- Selling to a data center
- Selling or leasing for solar
- Capital gains tax on a land sale
- Selling to a developer
- Selling part of your land
- Owner financing
- Documents needed to sell land
- Who pays closing costs
- How long it takes to sell land
- Sell or keep your land
- Selling to a family member
- Selling land on Zillow
- Selling on Facebook Marketplace
- Selling timber off your land
- Selling without mineral rights
- Pipeline easement on your land
- Property taxes on vacant land
- Selling land at auction
- Selling land for conservation
- Land prices per acre
- Can I sell land for any price?
- Selling land without a deed
- How much 100 acres is worth
- Do I need a lawyer to sell land?
- Selling land with an encroachment
- Selling land with a cemetery on it
- How much 10 acres is worth
- How much 40 acres is worth
- Realtor fees for selling land
- How to sell a vacant lot
- Selling land to a neighbor
- Why you get offers for your land