When most people think of 1031 tax exchanges they think of real estate. But section 1031 can be applied to other types of real property as well – including aircraft. That being said, there are some special considerations you have to take into account when exchanging aircraft.
1031 exchanges of airplanes are complex and many taxpayers have had their exchanges fail because of oversight. An experienced qualified intermediary can help you hit all your 1031 deadlines and get all your documents in line so that your exchange goes through without a hitch. Give us a ring today to start your aircraft 1031 exchange – 877.373.1031.
1031 Aircraft Exchanges in Rochester, MN
When doing a 1031 exchange of aircraft you have to abide by a few requirements. First and foremost, your aircraft (both the relinquished and replacement aircraft) needs to be used for investment or business purposes. So if you use your airplane primarily for personal purposes, it is not eligible for 1031 treatment.
Secondly, all 1031 exchanges – whether it’s real estate or aircraft – have to abide by the like-kind requirements. In the realm of real estate, determining like-kind is relatively easy. In the realm of personal property such as aircraft, like-kind is a bit more complicated. Essentially, both aircraft need to be listed in the same general asset class 00.21.
Lastly, aircraft exchanges need to abide by the standard 45 day and 180 day exchange deadlines. And your replacement aircraft has to be of equal or greater value to your relinquished aircraft.
Rochester Airplane 1031 Exchange Services
If you are considering an aircraft exchange in the Rochester, MN area, contact our qualified intermediaries to discuss your options. Involving a 1031 exchange professional early in the process can avoid a lot of potential problems down the line. Contact our Rochester 1031 intermediaries today if you are considering an airplane exchange – 877.373.1031.