A 1031 exchange, otherwise known as a tax deferred exchange, is a simple strategy and method for selling one property that is already qualified, and then proceeding with an acquisition of another property within a specific time frame. The logistics and process of selling a property and then buying another property are practically identical to any standardized sale and buying situation, a 1031 exchange is unique because the entire transaction is treated as an exchange and not just as a simple sale. It is this difference between exchanging and not simply buying and selling which, in the end, allows the taxpayer to qualify for a deferred gain treatment.