Let Us Assist You With Your Tax Exchange . . .
The high cost of purchasing your next aircraft does not have to include capital gains taxes! Its a simple matter to defer these taxes under the Internal Revenue Code (IRC) Section 1031. Keep your money where it can benefit you the most—in your pocket!
How It Works
If you are planning to sell your present aircraft and then acquire a new one, you may structure the two transactions as a qualified tax exchange. IRC 1031 permits a taxpayer to avoid realizing capital gains (or losses) if the taxpayer effectively exchanges one property for another. The rationale is that the IRS should not impose the severe burden of paying capital gains taxes in a qualified exchange. Congress has specifically provided releif to taxpayers in this situation. If a taxpayer is simply acquiring the new property to replace the old property and intends to use the new property in a similar (not necessarily exact manner) way, the taxes should be deferred.
So, why doesn’t everyone use the Tax Exchange?
Several reasons, (1) Taxpayers are not aware of this deferral technique, (2) The buyer often is not interested in participating in an Exchange, (3) Timing—the Taxpayer may not have found appropriate replacement property prior to closing the sale, (4) The Taxpayer fails to find a “qualified intermediary.” At USAT we will assist you to ensure your Tax Exchange is simple, quick, and inexpensive.
Consult Your Tax Planning Professional
Prior to beginning your Tax Exchange, it is important that you discuss this matter with your tax planning professional. Although we at USAT, Inc. are experts in all facets of Tax Exchanges, we cannot specificlly advise you on tax matters and still remain a “qualified intermediary” or “qualified escrow” agent under the IRC.
More Information
Need to learn more? Let us help with our free brochure discussing the “nuts and bolts” of a typical Tax Exchange on aircraft. Ready to begin? Contact us immediately, and one of our expert Tax Exchange professionals will be happy to assist you.