If you are planning on selling an investment property, you may face a large capital gain that could be subject to federal and state taxes. A tax-deferred exchange under Section 1031 of the Internal Revenue Code allows you to sell investment properties and acquire "like-kind" properties while deferring federal, and possibly state, capital gains taxes.
In order for you to receive tax-deferred treatment, an independent party must act as a Qualified Intermediary (QI) or Accommodator to hold your funds between the sale of your relinquished property and the purchase of your replacement property. Until recently a QI could be any person or firm not associated with the investor, with no licensing or other qualifications required. With recent QI failures, some states now have regulations in place. Utah has no active regulation program, be sure to investigate your QI thoroughly.
Real property in an exchange is land including any buildings intended to generate a profit. Property located outside the United States is not considered like-kind property located in the United States.