Hospitals and Medical Clinics Can Defer Gain with 1031 Exchange
Posted by Andy Gustafson on Mon, Aug 23, 2010
Hospitals and medical clinics can defer capital gain when selling and replacing equipment through a 1031 exchange. The equipment is personal property and any personal property used in a business is eligible for 1031 consideration.
The types of equipment includes:
- Bed, stretchers and tables
- Endoscopy
- Furniture
- Imaging equipment
- IV and infusion equipment
- Kitchen equipment
- Laboratory and pathology
- Laundry
- Maternity ward
- Operating room
- Patient care
- Patient monitors
- Physical therapy
- Radiology
- Respiratory equipment
- Surgical equipment
- Traction
- Wheelchairs.
When considering replacing medical equipment, tax managers should consider whether there is gain associated with a sale. If there is and the replacement property is like-kind then consider deferring the gain with a 1031 exchange.
