A 1031 exchange is one of the most powerful tax deferral strategies available to real estate investors. But it's also one of the easiest to get wrong. Unlike most real estate transactions, a 1031 exchange has strict rules, hard deadlines, and no flexibility for mistakes. Miss a step and the entire exchange is disqualified, triggering an immediate capital gains tax bill. Here are the most common reasons a 1031 exchange fails, and what you can do to avoid them. Missing the 45-D