While a Personal Property Exchange is generally more complicated, it can be very rewarding for the Business Owner who chooses to treat it as a Section 1031 Exchange. Owners of Personal Property who reinvest through a 1031 exchange, can avoid the much higher income tax rates  on the sale of personal property. The rate of tax on personal property is generally double the rate for real estate. Let our experienced staff guide you through a personal property exchange.

In order for personal property to meet the like-kind requirement, the replacement property must be of the same general asset class or of the same product class, or if the assets are deemed to be of “like-kind” under the general principles. See IRS Reg. Section1.1031 (a)-2(c(1) such as intangible personal property, collectibles, and artwork.

Before starting a personal property exchange, please call our tax attorneys to discuss your situation and to find out how it might be structured for the least taxing alternative.