With the end of the year quickly approaching, now is the perfect time to start tax planning!
If you are planning on selling and buying business or investment assets, a 1031 exchange is a great way to defer taxes on capital gains or depreciation recapture.
You may be wondering, what types of assets are exchangeable? Generally all real estate is considered to be “like-kind.” However, in other types of exchanges, defining “like-kind” can be somewhat more difficult. Section 1031 also applies to like-class properties (categorized using the North American Industry Classification System) which include:
- Farm and agriculture equipment
- Manufacturing equipment
- Cars, trucks, tractors, and trailers
- Aircraft and aircraft engines
- Railway cars and locomotives
- Maritime vessels, barges, and tugs
- Construction equipment
- Information and data handling equipment
NES Financial is one of the nation’s leading qualified intermediaries, offering a team of industry experts with experience in all market segments and exchange types. In fact, our general counsel helped develop significant 1031 guidance during her tenure at the IRS National Office in Washington, D.C. We are unique in that we have innovative technology-based solutions that can be customized to facilitate even the most complex 1031 exchange transactions.
To find out if a 1031 exchange is right for you, give us a call. We would be happy to discuss your options with you.
What is a 1031 exchange? Find out more by downloading our 1031 exchange kit.
Allow us to address your business needs by contacting us, or comment on this post below! We look forward to hearing from you!