Gas Station 1031 Exchange

Gas stations are some of the most common properties we see in Houston and across Texas, and we have handled exchanges for stations both with and without a convenience store. The basics are the same as any exchange: you sell your station, the proceeds go to us as your qualified intermediary instead of to you, you identify your replacement property within 45 days, and you close within 180 days.

What makes a station different is what you are actually selling. Only real property qualifies for a 1031 exchange, so the land, the building, and permanent improvements are generally the exchange portion. Inventory, fuel, equipment, franchise or fuel supply agreements, and goodwill are usually treated as business assets, and how the purchase price is split between them matters. Your CPA should review that allocation before you sign.

Environmental issues also deserve early attention. Underground tanks and past contamination can slow a closing, and a delayed closing can threaten your 45 and 180 day deadlines. If you find the right replacement station before you sell your current one, a reverse exchange may let you buy first and sell afterward.

You can exchange a gas station into almost any other investment real estate, such as a shopping center, apartments, farmland, or another station. Talk to us before you list or sign a contract, and consult with a CPA or tax attorney to confirm how the rules apply to your deal.