“The 1031 exchange went smoothly, our questions were answered thoroughly and we are very satisfied with the work performed by Atlas 1031 Exchange,” are the words the American Saddlebred horse owner used in a post-exchange review. His attorney found Atlas 1031 Exchange on the Internet along with other Qualified Intermediaries and selected Atlas 1031.
In the two horse 1031 forward exchange, the federal and state capital gain and depreciation recapture taxes from the sale of American Saddlebred gelding HS Daydream’s Celebrity were deferred with the purchase of American Saddlebred gelding Memories of Cabo. The transaction was completed within thirty days of the initial closing.
Section 1031 Exchange
Internal Revenue Code Section 1031 applies to property held in the productive use of a trade, business or for investment and provides for the deferral of federal and state capital gain and depreciation recapture taxes triggered upon sale if the seller purchases “like-kind” property and meets other conditions. The like-kind property can either be real or personal. Real property must be exchanged for real property while personal property must be exchanged for like-kind or like-class personal property. Livestock is eligible for 1031 consideration if exchanged for an animal of the same sex.
Hagan Saddlebreds
Louisville, Kentucky
