Understanding how a 1031 exchange works is crucial to its success, though. Here are a few example scenarios to help you get familiar with it. Taxes and real estate can get confusing.

Yet, even if we ignore the inevitable cooling that a nearly 40 percent tax would have on like-kind exchanges, the math doesn’t add up. If the administration’s goals are to raise more than $1 trillion ...

The 1031 exchange requirements necessitate that you exchange a current investment property for a new investment property. It doesn’t have to be a straight-up trade between you and one other party.

The 1031 exchange allows equity from one real estate investment to roll into another, while deferring capital gains taxes. And it’s often one of the best methods for building wealth over time.

Knowing the 1031 exchange rules for real estate and taxes will come in handy if you're an investor. Here's the details you'll need to know.

But not every state recognizes a 1031 exchange. Pennsylvania, for example, does not, Rosen said. Email your questions to [email protected].

Current Legal Status of Vehicles and 1031 Exchange To directly answer the question, as of the current tax legislation, vehicles, and cars do not qualify for a 1031 exchange.