1031 Personal Property Exchanges

Cincinnati, Ohio, Tax Lawyers: 1031 Personal Property Exchange

A 1031 property exchange allows property owners to defer federal and state taxes on gains from the sale of property. While most 1031 exchanges involve real estate, you can use this beneficial tax treatment on any type of property exchange from automobiles to coin collections.

At Strategic Property Exchanges, LLC in Cincinnati, our lawyers understand the rules that apply to 1031 personal property exchanges. We provide a high level of individualized and personalized service. Our federal tax opinion guarantees that your 1031 personal property exchange is in full compliance with applicable federal tax laws.

What is a personal property exchange?

While it is commonly known that real estate may be exchanged, it is not as well known that other types of business property can also be exchanged. Examples of property that can be exchanged with like property include:

• Cars, trucks, planes, trains and buses
• Computer equipment
• Franchises
• Intangibles
• Artwork and other collectibles
• Major league sports contracts
• Income-producing livestock

Property must be exchanged for like property. For example, you could not exchange gold bullion for silver bullion or trucks for cars.

What are the advantages and disadvantages of exchanging personal property?

The good news for taxpayers who exchange personal property is that the tax they are deferring is generally larger because the rate of tax on personal property tends to be double the rate of tax for appreciated real estate.

The bad news is that the regulations are rather strict on what is considered "like-kind" property.

For more information

To schedule a consultation about a 1031 personal property exchange, please call 513-412-3483 or fill out the contact form on this Web site. From our offices in Cincinnati, Ohio, our attorneys represent property owners throughout Ohio.