Like-Kind and Loving It: How to Implement a Tax-Free Exchange Under Code § 1031 for Art, Automobiles, Airplanes and Wine Collections
Sullivan & Worcester hosted "Tax Free and Loving it: How to Implement a Tax-Free Exchange Under Code § 1031 for Art, Automobiles, Airplanes and Wine Collections." This fourth program in our Tax Briefings 2014 series featured S&W attorney Joseph B. Darby III, AOC Investment Advisors founder Jennifer Williams-Bulkeley, and Winston Art Group Associate Director Michelle DuBois.This seminar discussed the steps and qualifications to implement a tax-free exchange of some of the most interesting and valuable tangible assets in the world today, including paintings and other fine art, classic or antique automobiles, private airplanes, and even bottles or cases of rare wines and other fine spirits. Many individuals invest in "collectibles" precisely because these assets have a proven track record of appreciation and return on investment. The purpose of this seminar was to help collectors understand how to upgrade their collections, and exchange existing holdings for "like kind" assets, without incurring substantial tax costs. An art collector, selling an oil painting and investing in a new and more exciting oil painting, can avoid taxes of up to 40% on the gain that would otherwise be recognized – literally, millions of dollars can be saved and reinvested tax-free in new art.