1031 Exchange
Also called: like-kind exchange, 1031, section 1031
A 1031 exchange defers capital gains tax on an investment property by rolling the proceeds into another one within strict deadlines — 45 days to identify a replacement and 180 to close. A qualified intermediary must hold the funds; touching them yourself voids it. Combined with the step-up in basis at death, it allows a lifetime of deferred gains to disappear entirely, which is why it is perennially proposed for repeal.