The Like-kind exchange is a powerful tax deferral tool. The Code Section that supports it – 1031 – is one of the few Code sections, like 501(c)(3) and 401(k), that have worked their way into the vocabulary of people other than tax geeks. Although the like-kind exchange is used heavily in real estate, there are other applications since 1031 applies to most property used in a trade or business or held for the production of income. One example is corporate jets. Even if they don't appreciate, they hold their value a lot better than the cost recovery deductions that are allowed would indicate so selling one jet to buy a new one can cause significant ordinary gain recognition. More