If you sell an investment property, you may owe taxes to the IRS.

The property could be a house, duplex, commercial building, apartment, or raw land.

Can you "defer" the taxes due when you sell? Yes, through a 1031 Exchange. 

Investors who want to sell one house & buy two houses, or sell raw land & buy a rent house can use this technique.

You are allowed to take some cash out of the sale but might owe taxes on that amount (referred to as "boot"). 

TIMING is critical & you must meet certain deadlines to qualify for the exchange. 

You need a "game plan" before you start. Consult with your tax adviser & your REALTOR.