Like-Kind property includes real estate held either for investment or business use such as an apartment building, office building, manufacturing plant, or vacant land. Also included is personal property of the same kind or class and depreciable assets.
General Assets Classes are types of depreciable tangible personal property frequently used in business such as machinery, equipment, tractors, trailers, automobiles, buses, trucks, as well as airplanes and other modes of transportation.
Product Classes are types of depreciable property identified by a 4-digit Standard Industrial Code (SIC).
Like-Kind Exchange Account Restrictions
Replacement property must be identified within 45 days of closing on the relinquished property. Replacement property need not be under contract within the 45-day period. The account holder will have the opinion to identify alternate properties.
Replacement property must be acquired within 180 days of closing on the relinquished property.
If the restrictions governing the account cannot be met, funds on deposit plus interest earned, excluding fees, will be returned to the seller.
Consult with experienced tax attorneys when a tax-free exchange is contemplated. The lawyers at Hintermeister & Kundel have the background and business experience to help you in many facets of your business that will benefit your new or existing company. We have a solid foundation in tax law and a practical knowledge of business organizations and the issues that accompany the formation, operation, purchase, sale and termination of businesses. For more information, contact us
today at 563.272.0003.