How Much Does a 1031 Exchange Cost in 2026?

Forward (delayed) 1031 exchange

The most common structure. Sell first, buy within 180 days.

The lightest structure to run — a single relinquished property exchanged for a single replacement.

Includes:

• Exchange agreement drafting
• Assignment of rights documents
• Holding funds in segregated account
• Wire to replacement closing
• Exchange closing statement / 1099 preparation

What should drive the fee up: multiple replacement properties, unusual property types (mineral rights, water rights, leaseholds), entity complexity (partnerships, trusts). Multiple replacements add per-property assignment work.

Reverse 1031 exchange

Buy first, sell later. Requires an Exchange Accommodation Titleholder (EAT) to hold one property temporarily.

More involved than a forward exchange because of the added entity and structure below.

Higher cost because:

• EAT entity formation and title holding
• Intermediate deed transfers (and their transfer taxes in some states)
• More complex exchange agreement
• Lender coordination during the parking period
• Attorney involvement on both ends

Some QIs quote the fee in pieces (base fee + EAT fee + acquisition fee + disposition fee). Ask for a flat-fee total in writing to avoid surprises.

Improvement (construction) exchange

Use exchange funds to improve the replacement property before taking title. Lets you exchange into a property worth less than your sold one by building value during the exchange period.

The most involved structure of the common exchange types.

Costs include the EAT structure (needed to hold the property during construction) plus additional agreements and accounting for the improvement work. Complex enough that most smaller investors skip this in favor of paying boot on a straight forward exchange.

DST 1031 exchange

Exchange into a pre-packaged institutional property held in a Delaware Statutory Trust.

The QI portion is modest; the larger costs live inside the DST offering itself.

On top of the QI fee, you're paying:

• DST acquisition fees built into the offering price
• Ongoing asset management fees
• Disposition fees when the DST eventually sells

These add up meaningfully over a multi-year hold. Figure them into expected returns, not just the headline cash-on-cash yield.

Hidden fees to watch for

Several costs that show up on some QI invoices but not others:

• Overnight shipping and wire fees. Some QIs absorb these. Some mark them up aggressively. Ask.
• Extension fees. If your exchange needs an identification amendment or timeline adjustment, some QIs charge an added fee per amendment.
• State filing fees. A handful of states require registered QI filings, which carry a small state filing fee.
• Interest on held funds. Some QIs keep 100% of the interest earned on your exchange funds. Some pass through at treasury yield. Over a 120-day hold on $1M, this can be $8k-$15k. Negotiate it.

Fee vs tax saved — the only comparison that matters

For most investors, the cost of running a 1031 is a tiny fraction of the tax deferred. Run the math:

• Sale: $1M with $400k gain
• Tax without 1031: roughly $100k-$140k (varies by state)

The conversation about cost should happen after you've confirmed the tax savings. If your tax savings are $20k+ on any sale, the cost is effectively a rounding error. If your savings are $5k on a small deal, shop harder or skip the exchange.

Model your numbers: 1031 exchange calculator.