Many people have business or investment property that they are looking to buy and sell but don’t want to have to pay unnecessary taxes on. If this applies to you, a 1031 exchange might be the way to go.
A 1031 exchange is a great tool to defer taxes on capital gains or depreciation recapture.
So if that sounds appealing, the next question to consider is what types of assets are exchangeable?
All real estate is considered to be like-kind (something necessary for a successful exchange) and tends to make up a large portion of 1031 exchange transactions. But apart from real estate, the following like-class properties also qualify for an exchange:
- Equipment – farming, agricultural, manufacturing, construction, and information and data handling
- Cars, trucks, tractors, and trailers
- Railway cars, locomotives, and box cars
- Maritime vessels, tugboats, and barges
- Aircraft and aircraft engines
- Art and other specialty items
If you have any of the above mentioned business or investment property and are looking to do a 1031 exchange, it is imperative to work with the proper 1031 qualified intermediary (QI).
NES Financial has more experience with Fortune 1000 and other clientele conducting all types of exchanges than any other independent QI.
What is a 1031 exchange? Learn more by downloading our 1031 Solution Kit.