Diamonds and Gems
1031 - A Diamond's Best Friend!
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Diamonds and gems (that are held for investment-purposes) qualify for 1031 tax-deferral.
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Not many gem-collectors know that you can do a 1031 exchange on gems that are held for investment - but now YOU do! |
45 Day Identification Requirement: Your replacement-gems must be unambiguously designated or identified by you no later than 45 days after the date of the transfer of your relinquished-gems. (See 3 Property Identification Rule)
180 Day Exchange Requirement: You must actually receive the benefits and burdens of ownership to your new-like-kind gems no later than 180 days after the date of the transfer of your old relinquished-gems. This means that you have to actually receive your new replacement-gems within the 180 day exchange-period.
Value Requirement: In order to defer all of the gain, your replacement-gems typically should be equal or greater in value than your old relinquished-gem, and all of your equity (or proceeds) from the sale of your old relinquished-gems should be reinvested into your new replacement-gems.
1031 TIP: In
order to qualify for 1031 - the diamonds/gems must be held for investment
or business purposes. This excludes jewelry that you use for
personal-purposes.
Likewise - jewelers that hold diamonds/gems as inventory (for sale to the
public) cannot conduct exchanges on these gems because inventory is excluded
from 1031.
Nation Wide Tax-Exchange Services:
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Call Me Directly (Toll Free) At 1-888-308-1031 For A Free Consultation - Or Click Here
To Start Your Exchange Online Today! |
