If you are planning on selling and buying business or investment assets, a 1031 exchange is the way to go. Why? Because it allows you to defer taxes on capital gains or depreciation recapture.
Of course that raises the question – what types of assets are exchangeable? All real estate is typically considered to be like-kind (a necessary component to a successful exchange). However, in other types of exchanges, defining “like-kind” can be a little harder.
Section 1031 also applies to like-class properties, categorized using the North American Industry Classification System. This includes but is not limited to:
- Farming and agricultural equipment
- Manufacturing equipment
- Cars, trucks, trailers, and tractors
- Aircraft and aircraft engines
- Railway cars, box cars, and locomotives
- Maritime vessels, barges, and tugboats
- Construction equipment
- Information and data handling equipment
NES Financial is the nation’s leading independent 1031 Qualified Intermediary, working with a wide range of clients, including some on the Fortune 1000 list. We offer a team of industry experts with experience in all market segments and exchange types. During her tenure at the IRS National Office in Washington, D.C., our General Counsel helped develop significant 1031 guidance, even writing part of the code for reverse exchanges. We are unique in that we have innovative technology-based solutions that can be customized to facilitate even the most complex 1031 exchange transactions.
Still want to know if a 1031 exchange is right for you? Give us a call at 1-800-339-1031. We would be happy to discuss your options with you.
What is a 1031 exchange? Find out more by downloading our 1031 exchange kit.
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