1031 exchange: 1031 Exchange Aircraft : Equipment : Livestock

Exchanges of tangible personal property aircraft, livestock, equipment, rolling stock and art comply with current Section 1031 tax law. We are dedicated to providing you with exceptional planning and assistance during your exchange.

Things You Need to Know About 1031 Exchanges of Aircraft:

1. Both the old and new aircraft must be used for trade, business or investment, and must be like-kind to one another. In general, all aircraft and helicopters (except those used in commercial or contract carrying of passengers or freight) are treated as like-kind under IRS General Asset Class 00.21. Commercial or charter aircraft and helicopters used for transporting passengers and cargo in scheduled air transportation, are similarly treated as like-kind to one another under Standard Industrial Classification (SIC) classification 3872.
2. You have 45 days from the date of closing on the old aircraft to identify a list of aircraft from which you will purchase the new aircraft.
3. From the date of closing, you have 180 days to close on one or more of the aircraft from your 45-day list.
4. You cannot have actual or constructive control of any of the proceeds received from the sale of the old aircraft. By law, all money is held by a Qualified Intermediary (also referred to as an Accommodator or Facilitator). You cannot have an associate or employee, your attorney, broker or CPA hold the proceeds, nor can you leave the proceeds in escrow until the new aircraft is purchased.
5. The titleholder on the old aircraft must be the same titleholder on the new aircraft.
6. You must reinvest all cash proceeds from the sale, and purchase a new aircraft or aircrafts of equal or greater value, in order to avoid taxation on the gains.

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