Farmers can benefit greatly from 1031 exchanges of land. However, there are many important things to keep in mind if you are a farmer considering an exchange. In this article, we are going to discuss a few important considerations for farmers looking to exchange their property in a 1031 transaction.
Personal Property Not Allowed
The biggest change in the 1031 exchange realm this year is that personal property is no longer eligible for 1031 exchange treatment. This is a result of the Tax Cuts & Jobs Act that went into effect in early 2018. Thankfully, this act preserved like-kind exchanges of real estate, but it effectively axed exchanges of personal property. That means any items of personal property you own and use for investment or business purposes cannot be exchanged in a 1031 transaction. Here are a few personal property items that cannot be exchanged:
Help Through the 1031 Exchange Process
At Commercial Partners Exchange Company, we employ the best and brightest qualified intermediaries. With more than two decades worth of experience, we have the skills and expertise to handle even the most complex of 1031 transactions. From preparing paperwork, to helping you identify replacement property, we can guide you through every stage of the 1031 exchange process. Give us a call today to learn more about our 1031 exchange services and to get the process started with your exchange!
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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