Increase your Cash Flow with a 1031 Exchange on your Machinery
Wheeler Auctions and Real Estate LLC has recently partnered with a qualified intermediary to do 1031 tax free exchanges on your Agricultural Machinery, Construction Equipment or other business related depreciable assets.
1031 exchanges, or “Like Kind Exchanges”, stem from Section 1031 of the tax code. In brief, this law says that if you structure the sale of business or investment uses assets as a 1031 exchange and then reinvest the proceeds into the purchase of replacement equipment you can defer recognition of that tax liability indefinitely. You may be familiar with this process through a Real Estate transaction, but not on your machinery when in fact it has been an established part of the tax code since 1921.
We feel this will be a great tool in selling your depreciated assets and allow you to keep your tax burden down thru the process of like kind exchanges.
The Basics
  • Any personal property used in your place of business is eligible for a 1031 exchange including Agricultural Machinery, Construction equipment and other depreciable business related assets.
  • You don’t have to buy at the same time you sell, but you have to identify your purchase within 45 days and you must close your deal with like-kind items within 180 days of selling.  If you don’t you must pay the tax on the items you sold.
  • You must be planning to replace the assets you sell with assets of a similar type. They don’t need to be the same age or quality, and they don’t necessarily need to be the same exact type of equipment. For instance a tractor is of like kind to a combine.
  • Your funds are held by the intermediary in a secure account until you purchase your replacement assets.
  • You cannot complete a Like Kind Exchange on assets you have sold in the past. You must get your Like Kind Exchange started before you sell.
Contact Wheeler Auctions (660)327-5890 for more information or to start your 1031 Machinery Exchange.
(p) 660-327-5890 • 23101 Hwy 24 Paris, MO 65275 • (f) 660-327-5380
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Wheeler Auctions & Real Estate LLC, 23101 Highway 24, Paris, MO  65275
Office: 660-327-5890 or 660-327-1806, Fax: 660-327-5380, Email:

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