Like kind exchange - qualifications
Answer:
An exchange of depreciable tangible personal property held for productive business or investment use may qualify for tax free treatment if it meets a "like kind" or "like class" test. The like class test includes 2 types. A general asset class and product classes.
An asset may only be classified within 1 asset class met to claim the like kind tax free treatment. The general asset classes may be found in the instructions for IRS Form 4562.
The product classes were designed under a coding system of the Standard Industrial Classification Manual. The manual assigns a 4 digit product class number.
Speak to your local CPA about the Standard Industrial Classification Manual or general asset classification for the like kind exchange tax strategies.
An asset may only be classified within 1 asset class met to claim the like kind tax free treatment. The general asset classes may be found in the instructions for IRS Form 4562.
The product classes were designed under a coding system of the Standard Industrial Classification Manual. The manual assigns a 4 digit product class number.
Speak to your local CPA about the Standard Industrial Classification Manual or general asset classification for the like kind exchange tax strategies.
