STATE PLANNING USING 1031 EXCHANGES AND DELAWARE STATUTORY TRUSTS: Section 1031 of the U.S. Tax Code allows investment property owners to defer capital gains taxes and depreciation recapture by exchanging their relinquished property for “like-kind” replacement property.

1031 exchanges have many moving parts. Here is a closer look at four important things you need to be aware of before getting started.

Closing the sale of the relinquished property without setting up a 1031 Exchange first , Not understanding the requirements for full tax deferral , Selling or exchanging into a property that is not held for investment or used in a trade or business…