Time Value Property Exchange;capital gains tax:1031 tax free exchange, section 1031 exchange, like kind exchange, property exchange, 1031 tax deferred exchange, reverse 1031, capital gains taxation



	A Fortune 500 Company was selling a Gulfstream IV for $16.0 Million. The Gulfstream IV had a zero tax basis resulting in a capital gain of $16.0 Million. Their intent was to replace the Gulfstream IV with a Gulfstream V valued at $30.0 Million. Ideally, they would have sold the Gulfstream IV initiating a classic deferred exchange, identified replacement aircraft within 45 days, and subsequently closed on the purchase of the replacement aircraft within the 180 days allowed under the 1031 Exchange "Safe Harbor" Regulations. Problem: The Company needed to purchase the Gulfstream V prior to selling the Gulfstream IV because they didn’t have a buyer for the Gulfstream IV and the Gulfstream V was immediately available. Solution: Time Value Property Exchange set up an Exchange Accommodation Titleholder entity to purchase the Gulfstream V on the Company's behalf and leased it to the Company with an option to purchase. The Company was able to use the aircraft, but was not the actual titleholder. Once a buyer was found for the Gulfstream IV, the relinquished aircraft was sold beginning a 1031 tax-free exchange. The Company subsequently purchased the Gulfstream V from the Exchange Accommodation Titleholder to complete the 1031 Exchange. Sales tax planning was also critical to ensure sales tax was not paid on both transfers of the Gulfstream V, which could partially negate the benefits of the 1031 Exchange.					If you would like to receive more information about our products and services, or if you would like to discuss a specific transaction and receive a proposal for services, please click the button below and send us a detailed email to 1031-INFORMATION@TVPX.COM, or call us TOLL-FREE AT 800-753-6933.