Commonly held misconceptions regarding the 1031 Tax-deferred exchange transaction include... 1st - You have to find someone to "swap" your property with before you can sell and exchange your property. Actually you are free to sell to anyone and buy from anyone you wish. A second misconception: To exchange a property, you have to buy the same type of property you are selling in order for it to be considered a "like-kind" exchange. Actually, as long as the property to be sold and the property purchased are for productive use in a trade or business or for investment purposes, taxpayers are free to purchase whatever type of property they want. A third misunderstanding is that a taxpayer must complete the 1031 exchange in one completely simultaneous transaction. The law provides for completing an exchange on a delayed basis as long as they purchase replacement property within 180 days of selling their first relinquished property. That taxpayers must use all the proceeds from the sale of the relinquished property to purchase replacement property is another misconception of the exchange law. Some of the exchange requirements for a complete deferral of taxes may be violated if a partial deferred exchange is desired. Good legal counse is critical in this transaction. Another misunderstaning of the exchage code is that you do not need a Qualified Intermediary for the transaction - that you can use your attorney or accountant as qualified intemediary. The IRS disqualifies any person or entity from acting as a qualified intermediary, if that individual has had an existing business relationship with the taxpayer withing the past two years. Good legal and tax counsel are critical for any Tax-deferred exchange. Thanks to T. R. Pajonas, Esquire for these common misconceptions regarding 1031 Tax-deferred exchange transactions.