Using a 1031 exchange to save taxes when a partnership sells

Much of the tax preparation community believes that you can’t use a 1031 exchange to save taxes on a gain from a partnership. They are wrong about this. Drake’s case presents a unique opportunity to save on taxes. He is anticipating a gain of approximately $1,000,000 from the sale of a property owned by a partnership. He should be able to shelter most of the gain using a 1031 exchange.