No, in fact the first tax free exchange dates back to the 1920’s and Section 1031 of the IRS code was first introduced in 1921. The early exchanges involved two parties who simply traded properties. The concept of “like-kind” exchanges gained momentum, in common practice, as an investment and tax deferral tool in 1990 with a re-write of Section 1031. At that time, it became legal to sell one type of investment property and buy any other type of real estate (multi-family, beach property, vacant land, commercial property, etc.). The code was also updated to include specific rules and timetables that must be followed for the transaction to qualify as a successful 1031 Exchange.
