1031 Exchanges
A 1031 tax-deferred exchange is a powerful tool. It is the IRS approved method that allows you to sell an investment property and defer capital gains and depreciation recapture taxes, providing you reinvest 100% of your equity into "like kind" property of equal or greater value.
Any property held for investment purposes or for productive use in a trade or business generally qualifies as "like kind" property for 1031 exchange purposes. A 1031 exchange is also referred to as a tax-free exchange, tax-deferred exchange, tax exchange, or Starker exchange.