A 1031 exchange enables you to reduce or eliminate taxes on the sale of business or investment property. A 1031 exchange program is a great way for an exchanger to integrate 1031 exchanges into its ongoing buying and selling processes.
The types of assets typically exchanged with a 1031 program include:
- Trucks, tractors, and trailers
- Equipment – construction, agriculture, and general use
- Railway assets – cars, locomotives, and ties
- Ships, tugboats, and barges
Many taxpayers who utilize 1031 programs are engaged in the business of leasing property. As the leased property is returned by the customer, the property is frequently sold, and new property is purchased to lease. Similarly, for taxpayers engaged in other types of businesses, as business use property is retired and upgraded, the retired property often has reasonable resale value. Due to the accelerated depreciation schedules used for non-real-estate business and investment properties, these sales trigger taxable gain. Thus, utilizing 1031 exchanges to reduce taxes for the continuous cycle of buying and selling is a very appealing solution.
When setting up your 1031 exchange program, be sure to work with a Qualified Intermediary (QI) who has the right experience and expertise to structure the most efficient 1031 exchange for your business needs.
As the leading independent QI, NES Financial has over 20 years of experience providing 1031 exchanges for Fortune 500 companies and more. When it comes to our levels of expertise, we are unrivaled. Our General Counsel helped develop significant 1031 exchange guidance during her tenure at the IRS National Office in Washington, D.C.
NES Financial’s 1031 Exchange Solutions deliver the highest levels of security, transparency, and compliance in the industry. Our team is well versed on all of the 1031 requirements, having helped create more 1031 exchange programs than any other QI in the country.
What is a 1031 exchange? Find out more by downloading our 1031 Exchange Kit.
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