Thinking about deferring taxes while moving into or out of River Crossing? If you own investment property or plan to buy one, a 1031 exchange can help you keep more cash working for you. The catch is that timing, use, and documentation rules are strict, and local details in Comal County can affect your plan. In this guide, you’ll learn the key rules, the best structures, and a step-by-step playbook tailored to River Crossing. Let’s dive in.
Why River Crossing attracts 1031 buyers
River Crossing sits along the Guadalupe River corridor in Spring Branch with large lots, a golf course, and private river park access. Many homes are custom builds on 1+ acre parcels, with gated sections and community amenities. Recent listings show vacant lots commonly around 1 to 1.5 acres and large single-family homes from the high $600s to $1.5M+ in some cases, reflecting the community’s scale and lifestyle. Community features such as golf and river access are regularly noted in local listings and guides, including examples on JBGoodwin’s River Crossing listing pages.
Property taxes are a key carrying cost. Comal County has taken recent actions that affect tax collections and rates, which can impact your pro forma as an investor. Review county orders on Comal Commissioners Court actions and local reporting on the tax rate increase for 2026 as you model cash flow.
1031 rules you must know
A 1031 exchange applies only to real property held for investment or business use. If you plan to live in the River Crossing home immediately as your primary residence, it generally will not qualify as replacement property. The IRS explains qualifying use and other basics in its plain-language guide to like-kind exchanges.
The two most important deadlines are 45 days to identify replacement property and 180 days to close. These are calendar days and are rarely extendable. See the Form 8824 instructions for timing and reporting.
You must use a qualified intermediary to hold the sale proceeds in a deferred exchange, and you will report the exchange on Form 8824. Receiving proceeds yourself can disqualify the exchange. Also plan for debt replacement and boot rules so you do not trigger taxable gain. The Form 8824 instructions outline how liabilities and cash are treated.
Common structures include forward exchanges, reverse exchanges, and improvement exchanges. Reverse exchanges require an Exchange Accommodation Titleholder and specialized coordination. A helpful primer is the reverse exchange overview in the 1031 exchange glossary. If you want passive ownership, a Delaware Statutory Trust can qualify as replacement property under IRS Rev. Rul. 2004-86, subject to sponsor and liquidity considerations.
Texas has no state personal income tax, so 1031 defers federal capital gains for Texas residents, while local property taxes still apply. For context, see the Texas Comptroller’s summary on state income tax.
Exchange into River Crossing: step-by-step
Confirm investment use
Define how you will hold the property as an investment. Common approaches include long-term rental, a vacation rental held for income, or property used in a real estate business. The IRS explains qualifying use and intent in its like-kind exchange guide.
Pick your structure
- Forward exchange: sell first, then buy your River Crossing replacement within the 45 and 180-day windows. See Form 8824 instructions for timing and ID rules.
- Reverse exchange: secure a River Crossing property now, then sell your relinquished property within 180 days. This route is helpful when inventory is tight. Review the reverse exchange overview and engage an experienced accommodator.
- Improvement exchange: if you plan to improve a lot or home during the exchange, structure it with an accommodator who can manage improvements during the exchange period.
Nail the local due diligence
- HOA and rental rules: confirm whether short-term rentals are allowed and any minimum lease terms.
- Title and access: verify easements and any private river park rights noted in community materials.
- Utilities and septic: many large-lot homes rely on septic or wells, which can affect operating costs and lending.
- Flood and insurance: properties near the Guadalupe River can have floodplain exposure. Obtain FEMA maps and prior claims.
- Taxes and carrying costs: review Comal County orders and local reporting on rate changes to model your annual costs. See county orders and the recent tax rate coverage.
Timeline and identification
- Day 0: closing on the relinquished property starts the clock. Your QI holds proceeds.
- By day 45: identify River Crossing property or properties in writing to your QI under the three-property or 200 percent rule. The Form 8824 instructions outline identification rules.
- By day 180: close on the replacement property. Track your tax return due date in case it shortens the 180-day period.
Exchange out of River Crossing: strategy map
Verify it qualifies
If your River Crossing property is your primary home, it generally does not qualify for 1031. If you converted it to investment use before sale, timing and documentation matter. The IRS defines qualifying use in its like-kind exchange guide.
Choose your next move
- Trade up: sell, then buy one or more investment properties while replacing equal or greater debt and equity to avoid boot. Use the Form 8824 instructions to plan basis and debt treatment.
- Go passive with a DST: many sellers shift into institutional quality, passive real estate via a DST that qualifies under Rev. Rul. 2004-86. Review sponsor track record, fees, and liquidity limits.
- Consider reverse tools if timing is tight: a reverse exchange can help you secure replacement before your River Crossing sale. See the reverse exchange overview.
Plan for local marketing realities
River Crossing homes often have unique features and larger lots, which can lengthen market time. Build a buffer for the 45 and 180-day windows or prepare a reverse exchange if you must lock in your next asset early. Strong presentation and targeted marketing can help you control timing.
Cost and risk checkpoints
- Missing the 45-day ID or 180-day close deadline usually means immediate tax recognition. See Form 8824 instructions.
- Touching the proceeds yourself or skipping a QI can disqualify the exchange. Review the IRS reporting guide.
- Buying a replacement you plan to use as your primary home right away will not qualify. See the IRS like-kind exchange guide.
- DSTs are not the same as direct ownership. They carry sponsor, control, and liquidity risks even though they can qualify under Rev. Rul. 2004-86.
Quick checklist for River Crossing exchangers
- Engage a 1031-savvy tax advisor early and select a reputable qualified intermediary.
- Decide your structure: forward, reverse, or improvement. Line up lender terms that work with an accommodator if needed.
- Document investment intent for the replacement property. Prepare leases or a rental plan.
- Add a cooperation clause to your sale contract to enable the QI to structure the deal.
- Build a 45-day identification calendar and 180-day closing plan. Track your tax filing deadlines.
- For River Crossing buys: obtain HOA rental rules, septic and well inspections, FEMA flood info, and a Comal County appraisal history.
- If considering a DST, review sponsor documents, fees, and investor requirements under Rev. Rul. 2004-86.
Work with a local partner who knows River Crossing
A successful 1031 exchange blends airtight timing with local knowledge. You need accurate pricing, strong marketing, and a plan that fits HOA rules, utilities, flood risk, and Comal County taxes. With award-winning listing marketing, relocation systems, and move-up expertise across the Hill Country, you get a service-first process from first call to closing.
If you are exploring a 1031 into or out of River Crossing, let’s build a plan that fits your timing and goals. Start the conversation with Blain Johnson today.
FAQs
What counts as investment use for a River Crossing 1031 purchase?
- The property should be held for business or investment, such as a long-term rental or a property used in a real estate business, per the IRS like-kind exchange rules.
Can I exchange into a River Crossing home I plan to live in?
- Not immediately. A replacement property intended for primary residence use does not qualify unless it is first held for investment under IRS guidelines and documented accordingly.
How do the 45-day and 180-day deadlines work in a 1031?
- You have 45 calendar days after selling your relinquished property to identify replacement options and 180 days to close, with limited exceptions tied to tax filing dates.
Are short-term rentals allowed in River Crossing for 1031 purposes?
- Rules vary by HOA and section. Confirm whether short-term rentals are permitted and whether minimum lease terms apply before identifying the property.
How do Comal County property taxes affect a 1031 purchase in River Crossing?
- County rate and appraisal changes influence operating costs and cash flow, so model taxes for your first full year of ownership using recent county orders and reporting.
What if I cannot find a suitable replacement within 45 days?
- Consider a reverse exchange to acquire first or a qualifying DST to meet deadlines, weighing complexity, costs, and liquidity limits before proceeding.
