As found on its website, Gulf Coast Title Partners offers the following about gulf coast 1031 exchange: “When a taxpayer sells property, the taxpayer usually has to pay income tax on the gain realized, typically the difference between the property’s adjusted basis and the sale price. Section 1031 of the Internal Revenue Code allows taxpayers to defer the income tax on gain realized when certain property held for investment or productive use in a trade or business is exchanged for property of like kind which is likewise held by the taxpayer for investment or productive use in a trade or business.