1031 Tax Exchange 

Section 1031 of the IRS code lets you sell a property and buy a new property without paying any taxes but you must use an accommodator to comply with the rules. 1031 Exchange types include; The Personal Property Exchange, The Improvement Exchange, The Reverse Exchange and The Delayed Exchange. The Personal Property Exchange allows investors to exchange either like-kind real or personal property for other like-kind real or personal property. The Improvement Exchange allows an investor to use exchange proceeds to either (1) make an improvment to an existing property or (2) build a new replacement property. The Reverse Exchange is the purchase of the replacement property prior to closing on the relinquished property. The Delayed Exchange is the most common exchange format, providing investors the flexibility of up to a maximum of 180 days to purchase a replacement property. To say it in simple terms, sales are taxable with the IRS and 1031 exchanges are not.