A 1031 tax deferred exchange is a strategic method for selling one property and buying another property within a particular time frame so as to save up on tax which you would have to incur if you just sold a property and didn’t buy one.

This is different from a sell and a purchase, in a practical situation it would result in the same thing but technically it would classify as an exchange instead of a sale. This allows the taxpayer to qualify for deferred gain treatment. To put it more simply we can say that the sales are taxable and exchanges are not.

To get more help on this you can see the 1031 Tax Exchange Services provided by Nationwide1031.com. You can see all details regarding the basics of the 1031 Tax exchange, Basic rules and more information which will clear up your doubts when it comes to Tax Deffered Exchanges.