A tax-deferred exchange is an approved method of selling investment properties and acquiring one or
more like-kind properties without paying any federal capital gains taxes whatsoever. Most states allow favorable
capital gains tax treatment. When such an exchange meets the criteria of the IRS Code Section 1031 and the regulations
promulgated by the IRS, the taxes are deferred until sometime in the future. For investments held by individuals,
the deferral can continue through any number of exchanges until the tax liability is extinguished by death.
