Can you do a like kind exchange on a vehicle?
The new tax bill removes the ability for every business to do a like-kind exchange with vehicles. The only property allowed to be used in a like-kind exchange is now real property, so all the vehicles are out.Click to see full answer. Similarly one may ask, are Like Kind Exchanges allowed in 2019?Beginning after December…
The new tax bill removes the ability for every business to do a like-kind exchange with vehicles. The only property allowed to be used in a like-kind exchange is now real property, so all the vehicles are out.Click to see full answer. Similarly one may ask, are Like Kind Exchanges allowed in 2019?Beginning after December 31, 2017, section 1031 like-kind exchange treatment applies only to exchanges of real property held for use in a trade or business or for investment, other than real property held primarily for sale.Likewise, can you still do a 1031 exchange? You can defer taxes as long as you still own the property. And you can do another 1031 exchange on the same property down the road and again defer the taxes, as long as you’re exchanging like-kind properties and following all the rules. You don’t even have to sell the property in your lifetime. Subsequently, question is, what qualifies as a like kind exchange? Generally, any real estate property held for the productive use in the trade or business or for investment qualifies for a like-kind exchange. The asset being sold must be an investment property and cannot be a personal residence. The asset being purchased with the proceeds must be similar to the asset being sold.Can I take bonus depreciation on a like kind exchange?Bonus depreciation for like-kind exchanges occurring between 9/28/17 and 12/31/17 will only apply to the boot paid, which is the price paid over and above the trade-in value of the relinquished property, and the adjusted basis of the old assets will not be eligible for bonus depreciation as it was under the old law.