Section 351 Transfer Vs 1031 Exchange

Hey GroupI

I was on a teleconference last night and someone mentioned the Escrow Recovery Program. So I went online and found they were referring to using a Section 351 Transfer to avoid paying capital gain taxes. Can anyone explain this further and is this a good option for real estate investors to avoid the hefty capital gain tax.

Section 351 says that you can transfer your real estate property to a corporation which you control in exchange for stock in the corporation. Since this exchange of property for stock is not a taxable event, there is no capital gains tax to deal with.

How you avoid taxes when the corporation sells the property is a mystery to me.