When he was asked in a post exchange follow up, “What particular issue did you find difficult and should have been covered with a thorough explanation,” he replied “There were no issues, the process was quick, seamless and efficient.” “There were no problems.”
Gold and silver bullion are eligible for Internal Revenue Code 1.1031 given the personal property is held for productive use in a trade, business or for investment. A 1031 exchange allows the federal, state and local capital gain tax to be deferred given the replacement property is of equal or greater value than the property sold. For precious metals and other collectibles, the federal capital gain rate is 28 percent in addition to state and local capital gains taxes. Smart precious metal owners understand the value of a 1031 exchange to defer taxes.
This client was referred to Atlas 1031 Exchange by his trusted precious metals dealer to accommodate a 1031 exchange of gold bullion bar for gold bullion coins.
Simultaneous 1031 Exchange
In this simultaneous exchange, the gold bullion bar was sold to the precious metals dealer and gold bullion coins were acquired in what are known as “Buy Back” transactions. The 1031 exchange documentation consisted of a exchange agreements recognizing the precious metals dealer acquired the bullion kilo bar and exchanged it for the bullion coin equivalent.
