According to the 1984 Congressional Tax Reform Act, owners can sell an income property and defer capital gains tax by identifying a "like-kind" exchange property within 45 days and then reinvesting the profits within 180 days.

By 1986, an increase in capital gains taxes had re-ignited interest in 1031 Exchanges. In 2002, the IRS issued new guidelines on how a group of buyers can pool their equity and acquire larger properties, and each still satisfy their individual 1031 Exchange requirements and defer capital gains taxes.