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You wouldn't do a 1031 for a timeshare for the same reasons as a 1031 on rental property. You're right. No tax deferral or savings. The typical 1031 for rental property is a sale - property for cash. This timeshare exchange would be property for property. If your host timeshare company has "a first right of refusal" on the timeshare sale, the 1031 may be the best mechanism to prevent them from exercising that right. They would have to satisfy both parties, since both parties are relinquishing a property. They are unlikely to do that, since the Timeshare company would gain nothing. The 1031 would simply allow two parties to exchange their timeshares. Not an option for anyone just trying to sell their timeshare.