The 1031 exchange is a technique that allows real estate investors to sell their investment properties and parley the profits into their next acquisition tax free. Well, perhaps it is more accurately described as “tax deferred”. There are many rules that you must follow in order for the 1031 exchange to be allowed by the IRS, but when you handle all the details correctly, you can build wealth much faster by avoiding capital gains tax, depreciation recapture, state taxes (in certain states) and for some taxpayers, the new 3.8% ObamaCare tax. You’re about to discover the ins and outs of the 1031 exchange so that you can decide how and when to employ this tax saving technique to your own investments.