The IRS allows you to sell or trade your property, and buy another "like kind" property deferring taxes on the gain until you cash out of the property. It is called an IRC 1031 tax deferred exchange. The capital gain deferment requires the property exchanged to be of "like kind": land for land, land for an apartment building, an apartment building for a rental house, a rental house for land, etc.

Any property held for investment or real property used in a trade for business can be exchanged for any other real property held for investment or any real property used in a trade or business. This government sanctioned device is an excellent way to preserve your investment capital. There are lots of rules that must be followed exactly when doing an exchange. Please consult your accountant or an IRC 1031 accommodator for advice on this procedure.