Collector Cars

(Listen Here 3:40 min)

The sale of classic and collector-cars can be very costly for investors if not structured properly. However, by using a personal property exchange, the sale can be treated as an "exchange" that is Not Taxable!

I have performed many of these 1031-exchanges for investors, on many different types of cars.

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

The key factor is that both the car that is given up and the new car that is received, must both be held for a "qualified purpose".

What does this mean?

Well, a "qualified purpose" means that you are holding the car either as an investment or for use in your trade or business.

1031 Tip: This does NOT mean that you can do a 1031 exchange on your "family car", because this "family car" would be considered to be held primarily for personal use.

The maximum capital gains rates for collectibles is 28% (as oppose to a mere 15% which is currently the ordinary maximum capital gains rate).

This means that the tax savings for collectors is nearly twice as advantages than with other types of property.  

There are very few people who know how to properly structure a 1031 collector-car exchange.

To avoid making a costly mistake, before you sell, you should make the proper-arrangements with an experienced qualified intermediary FIRST so that the transaction is treated as a "trade" or "exchange" (rather than a sale and repurchase) to be sure that you qualify for maximum tax-savings.

Nation Wide Tax-Exchange Services:

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