Section 1031 of the US tax code allows companies to defer capital gains taxes when selling business or investment assets and reinvesting the proceeds into similar "like-kind" replacement assets. This is called a 1031 like-kind exchange (LKE). It allows sellers to convert what would be paid in taxes into cash that can be reinvested back into the business. Common assets involved in 1031 exchanges include real estate and equipment used in industries like oil and gas, manufacturing, and transportation. To qualify for a 1031 exchange, the seller must use a qualified intermediary and identify possible replacement assets within 45 days and complete the purchase within 180 days.