The Denver 1031 exchange market
Denver investors are active in multifamily, industrial along I-70 and near Denver International Airport, mountain-town rentals and cannabis-related industrial. Many exchange out of the Front Range into lower-tax states, while others bring California capital in.
- Multifamily
- Industrial and flex near DIA
- Mountain-town and ski-area rentals
- Retail and mixed-use
Colorado 1031 exchange tax rules
Colorado taxes capital gains at a flat rate of about 4.4% and conforms to federal §1031, so a valid exchange defers both Colorado and federal tax.
Colorado withholds 2% of the sales price (or net proceeds, if lower) from nonresident sellers above a threshold.
See the full Colorado guide in our 1031 rules by state for more detail, and always confirm with a tax advisor.
How Denver firms use DeferAlly
- Deadline tracking: every Denver exchange shows live 45-day and 180-day countdowns, and an Urgent Deadlines board flags anything at risk.
- Escrow ledger: record deposits, mark funds received with the holding bank and see estimated interest.
- Identification checks: replacement properties are validated against the three-property, 200% and 95% rules, with map previews comparing relinquished and replacement locations.
- Documents and e-signature: exchange agreements, assignments and designation notices generated and signed in the app.
- Branded client portal: clients see their own deadlines, documents and balance under your firm's name.
- Delivery-tracked updates: email and text clients, closing agents and advisors, and resend in one click if a message fails.
Software for QIs, not a QI
DeferAlly does not act as a Qualified Intermediary and never holds exchange funds, so it never competes with Denver firms for clients. Your brand stays on everything your clients see.
Frequently asked questions
What is the best 1031 exchange software in Denver?
Denver firms choose DeferAlly for automatic deadline tracking, escrow ledgers, identification checks, built-in e-signature and a white-labeled client portal in one modern platform that needs no training.
What are the Colorado rules for a 1031 exchange?
Colorado taxes capital gains at a flat rate of about 4.4% and conforms to federal §1031, so a valid exchange defers both Colorado and federal tax. Colorado withholds 2% of the sales price (or net proceeds, if lower) from nonresident sellers above a threshold.
Can I exchange a Colorado rental into a mountain vacation property?
Only if the replacement is held for investment and meets the IRS rental and limited-personal-use guidelines. A second home used mainly for yourself doesn't qualify.
Do Denver exchanges follow the same 45-day and 180-day deadlines?
Yes. The federal deadlines apply everywhere: identify replacement property within 45 days of the sale and close within 180 days. DeferAlly calculates both automatically.