The 1031 Exchange in Forward or Reverse: Critical Components and Common Pitfalls.

The article discusses tax-deferred, like-kind exchanges (1031 Exchanges) which are governed by Section 1031 of the U.S. Internal Revenue Code and Section 1.1031 of the American Department of the Treasury's Regulations. It states that a typical forward 1031 Exchange allows a person to sell investment property and purchase more productive or profitable investment property while deferring U.S. federal capital gains and depreciation recapture tax liabilities. Reverse 1031 Exchanges are examined.