I am aware of most of the common items of doing a 1031 exchange, but have a question concerning specifics. The question I have is: Can a 1031 exchange be done between family members or does it have to be an arms length transaction? Perhaps what I am looking at does not even matter too much for a 1031 exchange. Iam considering stepping out of the real estate business and selling the property to a relative for the same price we paid for it. Therefore no gain - no capital gains taxes due. I did read somewhere that if sold to a relative they must hold it a minimum of 2 years or there is a chance of capital gains having to be paid. Again, If no capital gains, perhaps this need not apply?