admin / January 25, 2019
What a lot of people do not know is that one can exchange many types of non-real property held for investment or used in a business. For example, a manufacturing company can sell its delivery vehicles as part of a like-kind exchange and avoid the depreciation recapture. For non-real property, the “like-kind requirement” is interpreted much more narrowly. It must be essentially the same type of asset purchased as sold. A dump truck for a dump truck, a bakery oven for a bakery oven, etc. Goodwill is not exchangeable (but franchise rights and certain types of licenses can be exchanged). Personal use property is not exchangeable.
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