Real estate investors can use IRC Section 1031 to postpone paying tax on the gain if they reinvest the proceeds in a similar property. This doesn't mean that it's tax-free, but it does postpone the tax. Plus, they can defer indefinitely if they're smart about it. Real estate investors use this to grow their portfolios and increase the actual return on investment. To do this you'll need to know all the details of the Section 1031 code though, and should consult with an expert.  Here's the thing: Too many people assume that they can't use Section 1031 because they think