A Business Asset Exchange involves the purchase and sale of assets used in a trade or business, from a small Mom and pop store to a Fortune 500 Corporation. Businesses buy and sell their assets every day. Businesses buy and sell tens of billions of dollars of assets every year. These include assets as varied as planes, trains, automobiles, office equipment, construction and farming equipment. Deferring income taxes on gains from the sale of these assets can free up cash flow, reduce debt expense and allow the businesses to utilize their assets more efficiently.
The typical tax rate on the sale of these assets is approximately 39 to 42% making them the most highly taxed assets in the US. This is due to the fact these assets are rapidly depreciated under current tax law. Most Companies do not anticipate the taxes on the sale of these assets, since when the assets are sold, any proceeds are either applied against bank loans or reinvested in additional assets. It is only at the end of the year that business owners recognize they must pay taxes on gains from the sale of these assets, many times after the monies have long been spent.
When we handle your 1031 Business Asset Exchange for you, you can count on the following: (1) Your company will be able to reduce your taxes, increase your cash flow, reduce your debt expense and operate more efficiently; (2) No matter the size or complexity, our team will safely guide you through the process; (3) we guarantee our exchanges that they are correct, comply with the tax laws; you will not be subject to penalties or interest, that we will reimburse any mistake or error we make and that your proceeds are safeguarded in a password protected bank account in your name; (4) we return all calls and emails promptly and (5) we make sure all your questions are answered no matter how much time is involved.
Personal Property Exchange involves the sale and purchase of business property in a manner similar to the discussion above. However, a Personal Property Exchange differs in the the number and type of properties that may be exchanged. Real estate is not the only type of asset that can be exchanged. Business property, such as trucks, cars, planes, trains, buses, computers, equipment, franchises, intangibles, artwork, collectibles and the like can be exchanged as well.
You can be assured that we will take the time to discuss with you any and all available exchange and tax deferral options, whether or not a 1031 Exchange is a right fit for you. We do not charge for our Exchange Consultations. We only ask that you engage our services as your 1031 Exchange Intermediary if you believe that we are the most knowledgeable, friendly and customer focused Exchange Intermediary you have ever met. If you are willing to acquire assets that are similar to what you sold, then you are on the right track to a 1031 Exchange.
To get started, give us a call at 1-800-427-7212 and let our Exchange coordinators discuss your potential 1031 Exchange. Whether you are selling one asset or one thousand assets, our project management software can simplify your exchange and simplify your life. If you have your sale and/or purchase information handy, we can sketch out the possible exchange options for you. If you prefer email, send us an email at Steve@spe1031.com for a quick response to your Exchange questions.