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
Clint at Wheeler
Auctions (660)327-5890
for more information or
to start your 1031
Machinery Exchange. |
| |
WHEELER
AUCTIONS & REAL
ESTATE
(p)
660-327-5890 • 23101
Hwy 24 Paris, MO 65275
• (f) 660-327-5380
Visit
Us Online at
WheelerAuctions.com |
