Personal Property 1031 Exchange

Posted by Andy Gustafson on Thu, Jun 26, 2014

Personal property held in the productive use of a business when sold triggers a federal and state capital gain tax on the appreciation and a twenty five percent depreciation recapture tax that is deferrable in a 1031 exchange. The tax can be sizable given past years of bonus depreciation. If the owner will replace with like-kind or like-class property of equal or greater value than the net sales price, the deferral represents additional working capital or an indefinite interest free loan until the replacement property is sold or another 1031 exchange is initiated.

Read More

Tags: personal property

Initiate Your 1031 Exchange with a Certified Exchange Specialist


Download Complimentary 1031 Issues to Consider

Top 1031 Issues to Consider

Sign Up for Weekly 1031 Exchange Blog

Follow Atlas 1031

Most Popular Posts

Browse by Tag