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Exotic 1031 Exchanges

1031 exchanges are not limited to real estate, whether commercial or residential. The law allows for business or investment assets of all types to be exchanged for other Like Kind assets (officially, no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business, or for investment).

The same rules apply to these more exotic exchanges as for real estate, and so business property, aircraft, collectable cars, artwork and even jewelry could be covered under the 1031 umbrella — as long as they are in productive use, which includes collecting for long-term appreciation, with supporting documentation and insurance cover.

Not all business assets qualify for 1031 treatment. If the property to be exchanged can be defined as property held primarily for sale; inventories; stocks, bonds or notes; other securities or evidences of indebtedness; interests in a partnership; certificates of trusts or beneficial interest, then it will not qualify for a 1031 exchange. In general, though, if property is not specifically excluded by statute, it can qualify for tax-deferred treatment.

Southern Exchange Services has more than fifteen years experience crafting 1031 tax-deferred exchanges to meet investor needs. Contact us to discuss your particular assets, goals and timeframes, so that we can craft a unique exchange structure for you.