Under the 1991 Regulations, Homer transfers the duplex to Bart through a Qualified Intermediary and the sale proceeds are deposited with a Qualified Escrow Holder. If the exchange is properly documented and executed, Homer gets the same deferred tax treatment as if he had swapped properties with Bart. So you see, tax-deferred exchanging is not really a new concept. However, the current method of executing an exchange is fairly recent and certainly user-friendly. It cannot act as the tax or legal adviser for an exchanging taxpayer.
Any person considering a tax-deferred exchange is advised to seek independent tax and legal counsel.