1031 exchanges: a valuable investment tool for all.(Other Views)

Byline: Stephen A. Wayner

As the Internal Revenue Code's Section 1031 becomes more widely known across the country, many investors are discovering its advantages. Yet some investors incorrectly believe that a Section 1031 tax-deferred exchange is a tax avoidance device for large corporations. This lack of understanding undermines one of the tax code's most effective components.

Basically, Section 1031 allows buyers and sellers of investment property, or property used in a trade or business, to defer capital gains taxes from a property sale by rolling the pro