A 1031 exchange is from Section 1031 of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.
Mineral Rights can qualify for the exchange because it is a real property interest. If you sell your mineral rights for a gain and want to invest in a vacation property or other real property investment, you could benefit by deferring the capital gains tax into that investment. We are not tax advisors but happy to refer you to our contacts who specialize in this arena!