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In brief, if the property meets the requirements, yes. SEE BELOW:
Owners of investment and business property may qualify for a Section 1031 deferral. Individuals
, C corporations
, S corporations, partnerships
(general or limited), limited liability
companies, trusts and any other taxpaying entity may set up an exchange of business or investment properties for business or investment properties under Section 1031.
To qualify as a Section 1031 exchange, a deferred exchange must be distinguished from the case of a taxpayer simply selling one property and using the proceeds to purchase another property (which is a taxable transaction
). Rather, in a deferred exchange, the disposition of the relinquished property and acquisition of the replacement property must be mutually dependent
parts of an integrated transaction constituting an exchange of property. Taxpayers engaging in deferred exchanges generally use exchange facilitators under exchange agreements pursuant to rules
provided in the Income Tax Regulations
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