Section 1031 of the Internal Revenue Code allows the deferral of capital gains tax on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment. In this presentation, Dr. David Ling reviews the mechanics of like-kind exchanges and discuss the economic impact of like-kind exchange transactions on tax revenues, real estate sales activity and prices, investment activity and job creation, and debt financing.