Do any dealers or coin firms have a formal like kind exchange program/structure for coin transaction
Longacre
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Does anyone know if any dealer or coin firm has a formal like kind exchange program for clients? I was thinking whether a dealer or firm tries to get a large number of clients together in order to engage in like kind transactions, rather than sales and repurchases. How do the dealers/firms arrange this? I have not thought this through, but do any firms use a partnership structure with lots of partners as an incubator for LKEs and try to match like kind assets?
I know that the IRS has recently issued new proposed tax regulations under Sec. 1031 related to the taxation of escrow accounts, trusts, and other funds used during deferred exchanges of like-kind property. Also, there are particular rules related to Qualified Intermediaries (which I assume a dealer or coin firm would fall under) related to these exchanges. Without getting into a lot of the details (or providing legal advice), do any firms have these sort of tax-deferred programs available, and how do the new proposed rules impact these programs?
I know that the IRS has recently issued new proposed tax regulations under Sec. 1031 related to the taxation of escrow accounts, trusts, and other funds used during deferred exchanges of like-kind property. Also, there are particular rules related to Qualified Intermediaries (which I assume a dealer or coin firm would fall under) related to these exchanges. Without getting into a lot of the details (or providing legal advice), do any firms have these sort of tax-deferred programs available, and how do the new proposed rules impact these programs?
Always took candy from strangers
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
0
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<< <i>How would the dealer make any profit on a like exchange ? >>
The credit he gives you for your coins would be at the wholesale level and the valuation of the coins you receive in exchange would be at the retail level.
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<< <i>I believe Richard Nachbar (RNRC) offers a plan to take numismatic type in trade for certified $20 Saints or AGE's. Six months ago you could have traded for MS-63 Saints. Now you'll be lucky to get 62's. >>
I don't hink that woud be consideed a like kind exchange for tax puposes.
<< <i>The credit he gives you for your coins would be at the wholesale level and the valuation of the coins you receive in exchange would be at the retail level. >>
Same comment. I think the IRS would treat that as a purchase and sale based on the difference in value between the wholesale and retail valuations and the dealer would owe taxes on the "profit" in the transaction.