One of the most beneficial provisions in the tax code today is the Section 1031 tax free exchange. This is especially important today when commercial properties are selling at record prices, and many properties have a low tax basis resulting from a long holding period. An owner of a commercial real estate project may sell a project and place the gains earned in another property, and any taxes that would otherwise be due are deferred. Since the rules in the code are quite complicated and interpretations and rulings on the law are constantly occurring at the federal and state level, such rules require an attorney, accountant and accommodator to structure the transaction. The rule for a basic exchange is that once a property is sold, the selling party needs to designate a replacement property within 45 days of closing, and then close on that property within 180 days after closing. In addition, the investment in the new property must be equal to the value of the equity and loan from the relinquished property. However, making sure the details fall into place takes detailed analysis and structuring. In addition, it may be necessary to structure an exchange to be a reverse exchange or a construction exchange; these types of exchanges are more complicated and need advance structuring before a property is sold.