SECTION 1031 OF THE INTERNAL REVENUE CODE:
- States that no gain or loss shall be recognized on the exchange of property, provided a number of technical requirements are satisfied.
- Permits the exchange of virtually any type of real estate for any other type of real estate.
- Reflects Congressional policy not to tax theoretical gains where a taxpayer has continued his or her investment in like-kind property.
- Provides tax deferral, not forgiveness.