A tax-deferral strategy under Internal Revenue Code § 1031 that allows an investor to sell an investment property and reinvest the proceeds in a [[Glossary/L/Like-Kind Property|like-kind property]] without immediate [[Glossary/C/Capital Gains|capital gains]] taxes, provided strict timelines and rules are followed. In [[Glossary/D/Dissolution|dissolution]] cases, a 1031 exchange may be relevant when dividing [[Glossary/C/Community Property|community property]] that includes investment real estate. ## Source - [IRS Fact Sheet 2008-18](https://www.irs.gov/pub/irs-news/fs-08-18.pdf) --- #Glossary #Tax #Property-Division