Trying to line up a 45-day clock with real-world closings, inspections, and financing can feel intense. If you are selling an investment property in St. Charles County and planning a 1031 exchange, you want a clear path that keeps you compliant and on schedule. In this guide, you will learn the key federal rules, county-specific recording steps, a simple timeline, and local market tips that can make or break an exchange. Let’s dive in.
1031 basics that shape your timeline
A 1031 exchange lets you defer capital gains taxes when you sell real property held for business or investment and buy like-kind real property. The two most important deadlines are the 45-day identification and the 180-day completion windows, counted as strict calendar days. You report the exchange on Form 8824, and missing a deadline or taking sale proceeds directly can disqualify the exchange. See the IRS guidance on like-kind exchanges and reporting in the Instructions for Form 8824.
The role of a Qualified Intermediary
You cannot receive the sale proceeds yourself. A Qualified Intermediary, often called a QI, holds the funds and applies them to the replacement property. Engage a reputable QI early and put written agreements in place before closing to avoid constructive receipt issues. The IRS explains the mechanics and reporting in the Instructions for Form 8824.
Exchange structures to know
- Deferred exchange: You sell first, the QI holds funds, and you acquire the replacement within the 45 and 180-day windows.
- Reverse exchange: You acquire the replacement first through a parked-ownership arrangement with an EAT under the IRS safe harbor. Reverse exchanges are complex and fee-heavy. See the safe harbor framework in IRS Rev. Proc. 2000-37 and updates.
- Improvement exchange: An EAT can hold title while improvements are completed, but you must meet safe harbor rules and timing. Expect higher coordination.
- DSTs as replacement: Delaware Statutory Trust interests can qualify as replacement property, but they come with passivity and liquidity limits. Review the constraints in this DST overview on limitations and risks.
Missouri and county steps that affect closing
Missouri conformity with 1031
Missouri generally conforms to federal 1031 nonrecognition rules under rolling conformity. Always confirm current state law for your tax year with your CPA. See the state-level summary in Thomson Reuters’ 1031 overview.
Recording in St. Charles County
The St. Charles County Recorder of Deeds requires a Certificate of Value to accompany any deed that transfers title. Recording must meet Missouri statutory requirements, and fees are set by statute and local schedules. Coordinate with your QI and title team so the Certificate of Value and deed are ready to record at closing. Review county procedures on the St. Charles County Land Records page.
Assessments and tax timing
The Assessor estimates market value as of January 1 and reassesses every two years in odd-numbered years. Residential property is assessed at 19 percent of market value and commercial at 32 percent, before local rates are applied. Newly constructed residential property is added to the tax roll the first day of the month after occupancy. Learn more on the county’s Real Estate page.
Market realities in St. Charles County
Multifamily fundamentals across the St. Louis metro have been strong, and one report cited about 95.5 percent occupancy in the “Charles” submarket as of Q3 2024. Tight supply can make the 45-day identification window feel short, so have financing and due diligence lined up. See the metro snapshot in MMG Real Estate Advisors’ report.
Regional retail and industrial markets have shown relatively low vacancies with active leasing in recent reports. Due diligence timelines can vary by asset type, so plan your identification strategy around how quickly each product typically trades.
For single-family rentals, county-level data in 2024 to mid-2025 showed relatively stable pricing in the low-to-mid $300Ks and quick days on market in many months. That means competition can be real for turnkey rentals, especially in popular neighborhoods.
Your step-by-step exchange checklist
Pre-listing planning
- Engage a 1031-savvy CPA and select a Qualified Intermediary. Alert your title company that you plan a 1031 exchange. Early setup prevents constructive receipt issues.
- Choose your structure. If you might need a reverse or improvement exchange, get quotes and documentation requirements from QI and EAT providers early.
At the sale of your relinquished property
- Close through the QI so you never receive proceeds directly. Day 0 starts the 45-day identification clock. Identification must be in writing and delivered to the QI within 45 calendar days.
- Select your identification method: three-property rule, 200 percent rule, or the 95 percent exception. Deliver identifications in writing before the deadline.
During the 45 to 180-day window
- Order title commitments, inspections, and appraisals, and confirm financing on any identified properties. Multifamily and quality rentals can move quickly in St. Charles County, so move decisively.
- If using a DST, confirm the sponsor’s subscription window and the QI’s funding procedures. DST issuance windows can be short.
Closing and recording
- Complete your replacement purchase within 180 calendar days, or by your tax return due date if earlier. If you cannot meet the 180 days, a reverse exchange would have needed to be arranged before your sale.
- Coordinate recording with the St. Charles County Recorder. Provide the Certificate of Value and confirm current fees and processing times. See the County Land Records page for requirements.
- File Form 8824 with your tax return and retain all QI agreements and closing statements. For reporting details, reference the Instructions for Form 8824.
Key dates at a glance
- Day 0: Close sale through QI. Funds go to QI, not to you.
- By Day 45: Identify replacement property in writing under an IRS identification rule.
- By Day 180: Close on the replacement property. Count strict calendar days.
- Tax filing: Report the exchange on IRS Form 8824 for the year of the sale.
Common pitfalls and costs
Pitfalls to avoid
- Missing the 45-day or 180-day deadline. These are strict calendar deadlines and missing either usually destroys deferral. See the IRS instructions.
- Constructive receipt of proceeds. If you take sale funds, the exchange is likely disqualified. Use a QI and follow their escrow instructions.
- Boot from cash or debt mismatch. Cash received or paying down less debt than you replaced can trigger taxable gain. Coordinate financing early.
- DST surprises. Understand passivity and liquidity limits. Some sponsor actions can create tax outcomes you did not expect. Review common risks in this DST risk overview.
- County recording mistakes. Missing the Certificate of Value or using an incorrect legal description can delay recording. Check requirements on the Land Records page.
Typical costs to plan for
- Qualified Intermediary fee. Simple deferred exchanges cost less than reverse or improvement structures. Get written quotes.
- Title, escrow, and recording fees. Missouri recording fees include a first-page charge plus per-page fees. Confirm current numbers. See a local fee summary on Deeds.com’s Saint Charles page.
- Legal and tax advisory. Complex structures increase professional time and cost.
Work with a local advisor
A smooth 1031 exchange in St. Charles County comes down to early planning, strict deadline management, and tight coordination among your QI, lender, title team, and buyer’s agent. If you want hands-on guidance sourcing replacement property, navigating county recording, and keeping the timeline on track, connect with Susan Hurley Homes. Our team brings neighborhood-level insight, disciplined process, and the resources to help you execute with confidence.
FAQs
What is the 45-day rule in a 1031 exchange?
- You must identify your replacement property in writing within 45 calendar days after you close the sale of your relinquished property.
How does St. Charles County handle recording for a 1031?
- The Recorder of Deeds requires a Certificate of Value with any deed. Coordinate with your QI and title team to submit correct documents and fees at closing.
Does Missouri follow federal 1031 rules?
- Yes, Missouri generally conforms to federal 1031 deferral under rolling conformity, but confirm current law for your tax year with your CPA.
Can I buy outside Missouri for my replacement property?
- Yes. Replacement property can be anywhere in the United States. Foreign real property is not like-kind to U.S. real property under current rules.
What if I cannot close within 180 days?
- If you cannot close by day 180, the exchange usually fails and gain is recognized. Reverse exchanges require planning before the sale and use specialized structures.
