If you are planning on selling and buying business or investment assets this year, a 1031 exchange is a great way to defer taxes on capital gains or depreciation recapture.
But when it comes to the assets, exactly what types are exchangeable?
A few include:
- Farm and agriculture equipment
- Manufacturing equipment
- Construction equipment
- Cars, trucks, tractors, and trailers
- Aircraft and aircraft engines
- Railway cars and locomotives
- Maritime vessels, barges, and tugs
Now let’s say you have one of the above asset types that you would like to do a 1031 exchange for. How exactly do you go about getting started?
Structuring Your Exchange
First off, it is important to note that there are several different types of exchanges – forward, reverse, program, and specialty. There are also many requirements that must be fulfilled in order for the exchange to be successful. If you are not familiar with these requirements, it is recommended that you work with a qualified intermediary who is.
NES Financial is the leading independent 1031 qualified intermediary in the country. Our clients include Fortune 500 companies, and our General Counsel developed significant 1031 guidance during her tenure at the IRS National Office in Washington, D.C.
What is a 1031 exchange? Find out more by downloading our 1031 Exchange Kit.
Allow us to address your business needs by contacting us. We look forward to hearing from you!