Overview of Personal Property 1031 Exchanges
1031 exchanges of personal property often include exchanges of corporate and commercial aircraft, aircraft engines and related aircraft and aviation related equipment, shipping vessels, railroad rolling stock, automobile fleets, and trucks and trucking equipment.
Intangible personal property, such as radio and television broadcasting licenses, copyrights, and franchise licenses, qualify for 1031 exchange treatment. Gold coins, paintings, art work, and other collectibles may also qualify for 1031 exchange treatment.
Sale of Business Operations
Investors can exchange the individual personal property assets of a business operation when selling the assets of the business. Multi-asset 1031 exchanges often include both personal property and real estate assets and are a popular income tax planning strategy used by individuals, investors, small businesses, and large corporations.
Basic Rules and Requirements
Qualified Use Personal Property
The taxpayer must have held the relinquished property for rental, investment or use in his business, and must have the INTENT to HOLD the like-kind replacement property for rental, investment or use in his business.
Property not held for rental, investment or use in the Investor's business is not considered to be qualified use property and will not qualify for tax-deferred like-kind exchange treatment.
Comments(0)