What is a 1031 or Tax Free Exchange?

The term “Tax Free Exchange” is a reference to Internal Revenue Code 1031. This allows taxpayers to replace equipment and/or vehicles with similar pieces, in what is referred to as a “Like Kind Exchange”, without paying federal income tax on the transaction. Certain criteria need to be meet, please check with our sales representatives for details. A “Reverse Exchange” is a possibility, if you’ve already purchased the replacement pieces.