Antique Exchanges
Under Current Law - Antiques That
Are
Held For Investment Purposes -
Qualify
For 1031 Tax-Deferral!
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Whether you invest in antique clocks, slot machines, old collectible toys, rare china, furniture or other collectibles, you can defer taxes on your sale of antiques held for investment purposes!
The key requirement is that you must hold the antiques for a "qualifying purpose" rather than for your own personal use. Old or rare property that you use for personal use such as jewelry or your clothing that you wear or art in your home may not be considered by the I.R.S. to be held primarily as an investment.
45 Day Identification Requirement: Your replacement-antiques must be unambiguously designated or identified by you no later than 45 days after the date of the transfer of your relinquished-antiques. (See 3 Property Identification Rule)
180 Day Exchange Requirement: You must actually receive the benefits and burdens of ownership to your new-like-kind antiques no later than 180 days after the date of the transfer of your old relinquished-antiques. This means that you have to actually receive your new replacement-antiques within the 180 day exchange-period.
Value Requirement: In order to defer all of the gain, your replacement-antiques typically should be equal or greater in value than your old relinquished-antiques, and all of your equity (or proceeds) from the sale of your old relinquished-antiques should be reinvested into your new replacement-antiques.
