Under Section 1031 of the Internal Revenue Code, sellers of commercial real estate assets may defer the recognition of capital gains due upon sale by acquiring a replacement property of equal or greater value within 180 days. There are no tax credits available in these transactions. Rather, the benefit to the taxpayer is the time value of money associated with the deferral of taxes. If the taxpayer were to pass away prior to the sale of the last property in a series of 1031 exchanges, the taxpayer's heirs get the benefit of a step up in basis to fair market value. This stepped up basis can significantly reduce, or even eliminate any capital gains taxes that would otherwise be payable.