1031 Exchange
A swap of investment property that defers capital-gains tax.
A 1031 (like-kind) exchange lets a real-estate investor sell one investment property and reinvest the proceeds into another without paying capital-gains tax at the time.
The tax is deferred, not erased, and strict rules apply: like-kind investment property, a qualified intermediary, 45 days to identify and 180 days to close.