The exchange of properties for other properties directly between taxpayers was a standard procedure before the 1985 tax law exchange which provided for deferred exchanges. It is still possible to swap properties with another taxpayer. The values must be equal and if there is any boot or cash involved to balance the equities it makes it very difficult to accomplish in exchange in this fashion. Some people do it; others use a qualified intermediary and gain the “safe harbor” provided in the tax code, which greatly diminishes the chance of audit.