Discussion:1031 Exchange - Business Vehicles
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Discussion Forum Index --> Advanced Tax Questions --> 1031 Exchange - Business Vehicles
Discussion Forum Index --> Tax Questions --> 1031 Exchange - Business Vehicles
| 27 November 2008 | |
| Taxpayer exchanges a Toyota Pickup worth $15,000 and a Toyota Camry worth $10,000 for a Ford Pickup worth $10,000 and a Ford Mustang worth $15,000. No cash changed hands and there was no debt on any of the automobiles. My boss says that there is $5,000 in boot on this transaction. I say that since no there was no cash or debt involved, there is no boot. Who is right? | |
| 27 November 2008 | |
| Ok, I read that reg section. I agree that reg section would apply if a Toyota is not like-kind to a Ford or a Pick-up is not like-kind to a Sedan. I vaguely remember reading that a pick-up truck is not like-kind to a passenger auto. | |
| 27 November 2008 | |
| If it applies, (your boss must think it does) there is an exchange deficiency of $5K. | |
JackDaniel (talk|edits) said: | 27 November 2008 |
| Yes, I believe that pick-ups are not like-kind to passenger automobiles. | |
ReadMyLips (talk|edits) said: | 27 November 2008 |
| Taken from RIA federal tax coordinator:
RIA observation: Presumably, since a car, van, and SUV are not different in nature or character (see footnote 18.1), an exchange of a truck for a van or SUV would, like an exchange of a truck for an automobile (see footnote 30.1), not be a like-kind exchange. 18.1 IRS Letter Ruling 200241013 ; IRS Letter Ruling 200242009 ; IRS Letter Ruling 200240049 ; IRS Letter Ruling 200450005 . 30.1 IRS Letter Ruling 200241013 ; IRS Letter Ruling 200242009 ; IRS Letter Ruling 200240049 . | |
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