U.S. Department of Treasury

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While most people outside the public accounting field are not able to recite tax code sections, those who work in the real estate industry are likely familiar with Section 10310. As a refresher, Section 1031 of the Internal Revenue Code allows property owners to defer gain from the sale of property when they exchange it for like-kind property. Under this code, the gain is not recognized until the replacement property is sold. If the replacement property is exchanged for other like-kind property, however, the property owner can continue to defer the gain recognition.