Winter 2000/2001, Vol 25, No 4

Abstract: One of the least understood tax relief provisions of the Internal Revenue Code (IRC) is the tax-deferred exchange under Section 1031 of the IRC. Although the tax shelter days are basically gone for real estate investors, and the passive loss regulations work against them, the tax-deferred exchange lives on as a viable and excellent alternative to defer income taxes upon the sale of real estate. Properly structured tax-deferred exchanges can defer significant gain and the corresponding tax liabilities. Tax-deferred exchanges under Section 1031 of the IRS allow taxpayers a reasonable period of time in which to complete a tax-deferred transaction.