Main Reasons to Exchange

To defer capital gain from any investment property.
(property that does not qualify as your personal residence

Qualfying for a tax deferred exchange

A. Must be like kind property (any investment real estate for other investment real estate) B. Not like kind would be: Personal property for Real property, Personal residence for investment property, Stocks for real property etc C. Boot: Un-like property ( any cash received in transaction)

To qualify for a fully tax deferred exchange property must

1. Have a loan equal to or greater than the old loan
2. The replacement property must be identified within 45 days
3. You must close escrow within 180 days

Other Concerns

1. Review exchange with accountant or attorney
2. Proper Vesting
3. Proper wording of contract
4. You need to know original basis, adjusted basis and adjusted sales price