Tax-Free Exchanges of Aircraft Under Section 1031
© 1999 KEITH G. SWIRSKY

Galland, Kharasch, Greenberg, Fellman & Swirsky, P.C.
1054 Thirty-first Street, N.W., Suite 200
Washington, D.C. 20007
Telephone: 202.342.5251
Facsimile: 202.342.5219
E-mail: kswirsky@gkglaw.com 

Table of Contents  

	OVERVIEW
	STATUTORY REQUIREMENTS
	Held For Productive Use In a Trade or Business, or For Investment
	Business Use vs. Personal Use
	Holding Requirement
	Use of Single Member Llc's as a Planning Tool
	The Exchange Requirement
	Like-Kind Requirement
	Excluded Property
	Generally
	Partnership Interests - Aircraft Ownership by a Partnership or LLC
	Inventory (Stock in Trade or Other Property Held Primarily for Sale)
	MULTI-PARTY EXCHANGES
	DEFERRED EXCHANGES
	Time Limitations
	Identification of Multiple Properties
	Regulatory Safe Harbors
	Use of A Qualified Intermediary
	Use of Qualified Escrow Accounts and Qualified Trusts
	"Disqualified Person" Defined
	"Agent" Defined
	EXCHANGES OF PERSONAL PROPERTY
	The Definition of "Like-Kind" for Personal Property
	General Business Asset Classes
	Product Classes
	Other Personal Property
	Goodwill
	The Definition of "Like-Kind" for Different Forms of Ownership
	Exchanges of Leaseholds for Fees
	Exchanges Involving Fractional Ownership Interests
	MULTI-ASSET EXCHANGES
	Basis Issues in Multi-Asset Exchanges
	BOOT NETTING RULES
	Minimizing Boot
	Mortgages and Boot
	REVERSE EXCHANGES
	PLANNING CONSIDERATIONS: SALES TAX
	SEEKING PROFESSIONAL ASSISTANCE; CHOOSING A QUALIFIED INTERMEDIARY
	STEPS TO ACCOMPLISH A QUALIFIED INTERMEDIARY EXCHANGE
	About the Author