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 |
| This post has been edited to remove info that is under copyright by RIA.
If you have the RIA federal tax coordinator, look this up there; in particular, see the observation, and also they list several letter rulings to support their observation. | |
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