There are a number of myths surrounding a 1031 exchange. Not understanding the tax code or believing a misconception about the law can lead many investors to avoid using it to their benefit. For instance, many people believe that you have to find an investor who is willing to exchange their property for yours. While that’s a valid scenario, more often people use an intermediary who processes the sale of their investment and delivers a new one to the client. The tax code also isn’t limited to real estate transactions; it can include industrial equipment and transportation like planes, boats, and trucks. If you aren’t sure whether or not your investment would qualify for a 1031 exchange, it’s best to speak to a lawyer first. They’ll be able to discuss the specifics of your situation with you and tell you whether or not your investment exchange will qualify for the tax deferment.