All Exchanges Work, including Delayed and Reverse Starker Exchanges

Want to pay less tax?

You can.

First, would the sale of your existing business vehicle produce a gain or loss?

Don’t know? See the article titled “Tips for Best Tax Result on Vehicle Disposition” for how to calculate your gain or loss.

Loss. Sell the vehicle to claim the loss deduction.

Gain. Use a trade-in or other Section 1031 exchange to defer taxes on some or all of the gain.

Big, Surprising Gains

More people will pay more tax on their vehicles this year than in recent memory.

Why? Many taxpayers used Section 179 expensing and/or bonus depreciation on their 2006, 2007, 2008, and 2009 vehicles. That made for bigger, faster deductions.

Now, it’s that day of reckoning. It’s time to sell. The basis is low and the taxes are ... Log in to view full article.