A 1031 exchange enables you to defer paying income taxes on your investment property’s appreciation when you sell it if you invest all of the investment into a like-kind property. The most worrisome issue for many investors in Silicon Valley is finding and purchasing a replacement property within the specified time. You have 45 days from the day escrow closes on the sale of your property to identify in writing to your exchange intermediary three possible properties you will try to purchase. The IRS allows you 180 days from the day escrow closes on your sale, to close escrow on your purchase. The IRS does not allow any exception to these time limits. Learn more about doing a 1031 exchange. Work with a top Silicon Valley real estate agent who has done many 1031 exchanges, and you greatly increase your odds of success.