Aircraft Exchange

Don't Make The Mistake Of Selling
Your Aircraft Without Exchanging It!

(Listen Here 7:50 min)

You can save thousands of dollars by utilizing a 1031 Exchange when you sell your old aircraft and replace it with a new aircraft. 

Many people are unaware that Section 1031 of the internal revenue code applies to aircraft as well as other types of personal-property. 

In order to qualify, both your old (relinquished property) and your new aircraft (replacement property) must both be used for investment or use in a trade or business.  Aircraft that are used for personal or recreational-purposes do not qualify for 1031 treatment.

Like-Kind Requirement: Your exchange has to be of like-kind (or in this case "like-class") property.  Generally, all US aircraft are considered like-kind to any other US aircraft because they are listed in the same General-Asset-Class.

Airplanes, including airframes and engines (except those used in commercial or contract-carrying of passengers or freight), and all helicopters, including airframes and engines are listed in General-Asset-Class 00.21.

Note: Commercial aircraft or aircraft used in air-charter service (passenger or freight) are NOT within the aircraft General-Asset-Class 00.21.  

45 Day Identification Requirement: Your replacement-aircraft must be unambiguously designated or identified by you no later than 45 days after the date of the transfer of your relinquished-aircraft. This means that you must identify your replacement-aircraft by Make, Serial Number and Registration Number - (See 3 Property Identification Rule)

180 Day Exchange Requirement: You must actually receive the benefits and burdens of ownership to your new-aircraft no later than 180 days after the date of the transfer of your old relinquished-aircraft. This means that you have to actually receive your new replacement-aircraft within the 180 day exchange-period.

Value Requirement: In order to defer all of the gain, your replacement-aircraft typically should be equal or greater in value than your old relinquished-aircraft, and all of your equity (or proceeds) from the sale of your old relinquished-aircraft should be reinvested into your new replacement-aircraft.

Sales Taxes:  Sales taxes are usually due to the local taxing-authority at the time of transfer of the aircraft, and are generally required to be collected by the seller of the aircraft.

Use Taxes: Use taxes are generally payable by the purchaser of an aircraft, if the seller does not collect and remit sales tax.

Call Me Directly (Toll Free) At 1-888-308-1031 For A Free Consultation - Or Click Here To Start Your Exchange Online Today!