How can I avoid Capital Gains Taxes?

Section 1031 of the Internal Revenue Code allows an investor to defer indefinitely the payment of capital gains taxes on the sale of property when he reinvests in replacement property of equal or greater value. This means an investor can move all of his equity from his relinquished (old) property to his replacement (new) property, rather than just the amount left over after paying capital gains taxes. It frequently happens that after paying the capital gains taxes, an investor could no longer afford to purchase the property he just sold!