Have an investment property that you want to sell to buy a new one? I'll tell you how to do it tax free coming up nextâ¦Hey, this is Joseph Yomtoubian and you are watching FirstAmericanTv.com, Your source for Real Estate and Mortgage News 24/7. One of the best ways to defer paying federal income taxes while investing in real estate is by buying and selling properties and using a 1031 tax deferred exchange mechanism. 1031 exchange allows you to sell an investment piece of real estate and buy a subsequent piece of real estate of equal or greater value and not pay federal income taxes on the sale. Just make sure the sale and the purchase are within 45 days of each other. That's it for nowâ¦.Thanks for watching FirstAmericanTV.com. I'm Joseph Yomtoubian. Check back soon for more tips and real estate news.