If you are considering selling one property and buying another and you will make money on your sale, you might need to do a 1031 tax-deferred exchange.  This is a tool that you can use to avoid paying tax on the "gain" from the sale, but you have to comply with the IRS rules.  Consult your CPA!

The basics are that you have to set up the exchange process in advance.  A "Qualified Intermediary" is used to hold your proceeds in trust and use them for your subsequent purchase, called a "replacement Property".  There is a time limit for you to "identify" a replacement property (probably 45 days from the sale) and you must complete the exchange within a time period (180 days with exceptions). Your Qualified Intermediary can't be your CPA, attorney, or real estate agent that you have recently worked with. We can recommend a local 1031 attorney we work with here at the beach. 

This is a procedure that can save you money.  We represent people doing 1031 exchanges fairly often.  Call us to go over this!