Business & Personal Property
Under IRC Section 1031 the following property is not eligible for tax deferred status:
- 1. Stock in trade held primarily for sale
- 2. Stocks, bonds, or notes
- 3. Interest in a partnership
- 4. Other securities or evidence of indebtedness
- 5. Certificates of trust or beneficial interests
- A 1031 tax deferred exchange allows investors to defer capital gain on the purchase and sale of like kind personal property, such as aircraft, automobiles, and business equipment. With respect to personal property exchanges the like kind requirements are narrower than those for real property exchanges. Generally, to qualify as "like kind" the relinquished and replacement depreciable personal property must be in the same General Asset Class or Product Class. There are 13 General Asset Classes:
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- 1. Office furniture, fixtures and equipment
- 2. Information systems (computers and peripheral equipment)
- 3. Data handling equipment, except computers
- 4. Airplanes, except those used commercially, and helicopters
- 5. Automobiles and taxis
- 6. Buses
- 7. Light general purpose trucks
- 8. Heavy general purpose trucks
- 9. Railroad cars and locomotives, except those
10.owned by railroad transportation companies - 11.Tractor units for use over-the-road
- 12. Trailers and trailer mounted containers
- 13. Vessels, barges, tugs and similar water-transportation equipment,
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