Tax-Deferred Exchanges of Personal Property

Did you know that personal property can be exchanged using Section 1031 of the Internal Revenue Code in addition to real estate. It is a little known fact, and many companies sell and buy personal property and pay the capital gain taxes when they could be exchanging and deferring their income taxes instead.

As corporations and individuals alike learn more about the income tax benefits of this powerful income tax-deferral strategy, we are beginning to see an increase in personal property tax-deferred exchanges.

The vast majority of tax-deferred like-kind exchanges involve real estate. Personal property 1031 exchanges only account for an estimated 5% of the total transactional volume. However, research indicates that the growth in personal property 1031 tax-deferred exchanges will be significant over the next decade.

The income tax consequences are phenomenal. Click here to learn more about tax-deferred exchanges and personal property assets.