The U.S. government needed a quick revenue channel when we entered into World War 1 and because of this the IRS sanctioned Section 1031, but it did not include a tax-deferment option. This option did not become available until Congress enacted the Revenue Act of 1921 which allowed for like-kind and non-like-kind exchanges to be performed. It was designed to provide relief to taxpayers by providing a deferment with hopes that they would continue reinvesting their money. However, Congress quickly amended the act with Revenue Act of 1924 which made only like-kind exchanges eligible for tax deferral.
Of course the 1031 Exchange has changed dramatically since it's birth. Revenue Procedure 2000-37 provided investors with Qualified Intermediaries to guide investors with the best exchange options for them. Tennessee 1031 Exchange is the best Qualified Intermediary to help you with all of your exchanges. If you have questions, or want to start an exchange, click the button below.