By completing an exchange, the investor (Exchanger) can dispose of their investment property, use all of the equity to acquire replacement investment property, defer the capital gain tax that would ordinarily be paid, and leverage all of their equity into the replacement property. Two requirements must be met to defer the capital gain tax: (a) the Exchanger must acquire “like kind” replacement property and (b) the Exchanger cannot receive cash or other benefits (unless the Exchanger pays capital gain taxes on this money).

• Strict time limits to follow.
• Must buy greater value.
• Need to reinvest in real estate.
• Capital gains taxes are deferred.
• Try to avoid “boot”.

For more very detailed information on 1030 exchanges click here… http://www.ipx1031.com/etopics.html

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