From the Wall Street Journal. This is walled off so you do have to have an account at WSJ, usually don't like to post about articles that are walled off. However, the Wall Stree Journal will be opening up for free very soon I've heard.
This issue relates more to commercial property, and using the 1031 exchange, so you don't have to pay capital gains taxes.
If you plan accordingly, and have a strong network of partners, you shoudn't have a problem finding a property to buy which is of equal footing and satisfy your 1031 exchange. The key is to plan, and not wait, always be thinking about what you need to put in place for a property in the future.
'Some smaller real-estate investors are turning away from a popular tax-deferral strategy that has attracted scrutiny after fraud allegations.
A number of investors had already started to reject the option out of concern about another problem: high prices for commercial properties.
The so-called 1031 exchange strategy allows participants to defer, or sometimes avoid, paying capital-gains taxes when they sell a business or investment property if they plan to buy another property of equal or greater value. To qualify for the benefit, the seller can't touch the money from the sale. Instead, the money typically is received and held by a "qualified intermediary" until it is used to buy a new property.'