Section 1031 of the Internal Revenue Code provides for the postponement of the tax liability for the gain in the sale of investment and business property. Under Section 1031 you can sell an investment or business property without paying tax for any gain resulting from the sale, provided you exchange the property being sold for a like-kind property of equal or greater value than the one you are selling. The gain deferred under a Section 1031 exchange of like-kind properties is tax-deferred, not tax-free.