Hi Tina, What you may be referring to is a "Starker 1031 tax deferred exchange" (IRS code 1031). As a veteran Realtor with over 20 years experience, I have had the opportunity on several occasions to work with clients assisting with this transaction. Actually within the last few months. What may be a problem here is if the property has already changed hands. In theory, you are trading your current property for another. The sale process requires the seller working with a specialty title company known as the disinterested third party who holds the funds from the sale of your first property while you identify like kind properties to purchase. The seller never receives the funds from the sale. Once purchases are identified, funds from the sale are transferred by the title company to the new properties purchased along with the additional funds need to even out the sale, called the boot. Because in theory this was a trade and not a sale your capital gains taxes are deferred until the new property is finally sold. Again if you have already closed it is probably to late, however, now you and maybe a few others now know for future purposes.
Broker / Licensed Real Estate Principles Instructor
William E Wood & Assoc. Realtors
222 Mustang Trail
Va Beach VA 23452