Anyone doing any like kind exchanges to avoid taxable gains before year end?

Longacre

Just curious if anyone is making tax free trades/exchanges in order to avoid taxable gains on sales (i.e., rather than selling your coins if you want to get rid of them and start another series, you trade/exchange them instead). The rules are pretty complicated and there are time limits and like kind rules, but I am just curious if anyone is doing this to a large extent.

nwcs

Gains on sales? What's that? I don't think I've seen much of that before.

Casey

I'm pretty sure tax deferral on like-kind exchanges only applies to real estate. Trading coins could still produce a taxable gain, although detection risk would be pretty low.

orie

I'll trade my two fifty dollar cats for your hundred dollar dog!!

TUMUSS

What coins?

boz

Get real

Lakesammman

No, but I am selling all my leftover "dot-bust" stocks (except CLCT) and mistake coins to generate some losses.

MORGANHUNTER2

Longacre- if you want to trade some coins I would be happy to- I have 2,000 shares of Old enron stock that I would love to trade out- make me a coin for share offer(no memorials please)..

Ronyahski

To shed some light on the rules, Longacre is right, you can exchange coins for coins, as long as they are held for investment, and not held for some other purpose, such as inventory.

Code Section 1031 of the Internal Revenue Code allows you to exchange, among other things, property held for investment for other like-kind property also held for investment. Investment coins exchanged for investment coins would qualify.

Certain property is excluded from Section 1031 that allows for a tax-free exchange. Property excluded includes, among other things, stocks, bonds, notes, and other securities or evidence of indebtedness. So Enron or dot.com stock is out.

Better question is how many report gains on their coins in the first place.