Artwork 1031 Exchanges at Risk Under New Tax Plan

Artwork 1031 Exchange

The GOP recently released the details of a new tax overhaul. Thankfully, 1031 exchanges of real property have been preserved under the new bill, but artwork was not so lucky. In this article, we are going to discuss the implications of disqualifying artwork from 1031 exchange treatment.

Artwork 1031 Exchange

Many people are not even aware that 1031 exchanges apply to artwork, but like-kind exchanges apply to both real and personal property. If artwork exchanges are eliminated, it would have a big impact on the high-end art market. Many investors would likely rush to exchange their artwork before the change took effect. After that there would likely be stagnancy in the market. This is because people would typically hold on to their investment rather than pay the capital gains taxes.

Of course, the newly proposed tax plan is still being debated and altered, so it’s possible that artwork exchanges would be preserved if tax reform is passed. Until then, you can contact your representatives and tell them to preserve the artwork exchange in the new tax bill. Here is a link to find your representative.

Minnesota Artwork Exchanges

If you have questions or concerns about 1031 exchanges of artwork, contact a qualified intermediary. At Commercial Partners Exchange Company, our qualified intermediaries have decades of experience helping investors with personal property exchanges in Minnesota and across the country. Contact us today at our downtown Minneapolis office to set up a time to chat about how to defer capital gains taxes with an artwork exchange.

  • 1031 Hotline: If you have questions about artwork exchanges under section 1031, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.


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