Let’s start with a definition: Your trade-in of a business vehicle or airplane on a like-kind business vehicle or plane is called a “Section 1031 exchange.” The good news is that you don’t pay taxes on a 1031 exchange (unless you receive cash or a reduction in debt). But that’s not all. By using some proven tax strategies, you can make the 1031 exchange even better!
Want to find out how? Read my new article titled Tax Tips: New: Big Bonus Depreciation Break Applies to Trade-Ins.
Three ways our fact-filled article can help you:
- You’ll get some good news about a tax bonus that’s waiting for you. New assets (not used) purchased after September 8, 2010 and placed in service before January 1, 2012 qualify for a 100% bonus depreciation on both the carryover and the additional basis. Get all the facts when you read the full article.
- We’ll tell you how to get a double tax benefit. It’s easy! All you have to do is combine the Section 1031 exchange and the 100% bonus depreciation. To get the whole story in easy-to-understand language, read the full article.
- We’ll explain an easy strategy you can use now. If you usually like to trade your vehicle, rather than sell it outright, we’ll tell you about a vehicle trade-in strategy that grants you 100% bonus depreciation on both your carry-over basis and boot. Get full details when you read the full article.