A brief overview of 1031 (and reverse 1031) exchanges.
You may also exchange a single property for multiple properties, or purchase one property from the proceeds of several.
A popular strategy in the past was to acquire a replacement property in an exchange, rent the property out for a year, convert the property to a personal residence and sell it after two years and exclude the capital gain under the home sale exclusion rules. Congress closed this loophole in 2004.
