turbo6bar is correct on all accounts, except.... if you touch (use) part of the money, its called a "boot". SOME accountants believe that will negate a portion (not all) of the 1031 tax advantage. If you are accessing some of the money (boot) you are in effect, directing the exchange, which some see as a no-no. Its really a grey area. If you boot $10k, you MAY have to pay gains on that $10k. Or you might not, depending on your accountant and the mood of the person at the IRS reviewing your return
