Wednesday, August 13, 2008 at 11:59AM
William L. Exeter
In theory, yes.  1031 exchanges can be used for more than just real estate.  A 1031 exchange of a car would be considered a personal property 1031 exchange.

Held For Investment
The question is whether the car - or any personal property for that matter - was held for investment (such as rental property) or used in the taxpayer’s trade or business.  It will qualify for 1031 exchange treatment if it has ben held for investment or used for business.

Like Kind Property
The next issue is what to 1031 exchange the car for.  The definition of like-kind property when dealing with personal property 1031 exchanges is much more specific than when dealing with real estate.  The 1031 exchange would have to be a car for another car, and they would both have to be held for investment or used in a trade or business.