Its law now. The tax legislation has passed and while there are many facets that affect your small business and personal returns the most important is the 1031 Exchange because it will expire on December 31st of this year for all asset classes with the exception of real estate.
The 1031 Exchange allows you to exchange “like-for-like” or “like-kind” equipment or assets without incurring a tax liability when you sell the current asset. You simply put the money into your new asset. In affect you are deferring that tax liability.
We’re not accountants but we know how to read. Here is our recommendation if you are looking to upgrade or replace current equipment now may be the best time ever. If new equipment is in your plans calling now can save you big money.
First call us at 1(888) 674-7531 and let’s get things rolling so you can act swiftly. We’ll soft - pull your credit and protect your standing while locating over 100 funding solutions. Call now, we anticipate an end of the rush on equipment loans and equipment financing.
Second contact your accountant and get their opinion.
Can a vehicle be part of a 1031? Maybe, did you make improvements to use it for your business. Are you exchanging for the same brand? Call your accountant.
How about equipment or machinery you need to do business? Probably. Your accountant will know for sure.
Doesn’t the new legislation have better depreciation schedules? Yes, but the 1031 Exchange is about tax liability on the sale of the current asset not expensing the new one. (We’ll cover the new depreciation expensing schedules in the very near future.)
Call now 1(888) 674-7531 and we’ll get things started with potential lenders – no obligation to you. Then check with your accountant and you will be able to make the best decision. The 1031 Exchange will be gone for all but real estate when the clock strikes midnight December 31st. You can save on taxes and get new equipment at the same time.