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would this qualify as a like-kind exchange

I believe it might qualify as a Starker exchange.

Taxpayer buys artwork. Within 45 days identifies another piece of art and sells it within 180 days. (The original dealer has received his money and gone away.)

Any help would be appreciated.

Gary

Reply to
Gary Goodman
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EXCHANGE ARTWORK AND COLLECTIBLES AND DEFER PAYING CAPITAL GAIN TAXES You did not mention whether a qualified intermediary was used to handle the sale and purchase.

Reply to
Alan

Is taxpayer in the trade or business of buying and selling artwork at a profit?

If not, forget deferred exchanges.

Reply to
Arthur Kamlet

If this artwork is "inventory" - held for sale or exchange in a trade or business by the taxpayer - the "exchange" can't be a section 1031 like-kind exchange no matter how you do it.

*Inventory* is not eligible for like-kind exchange treatment.
Reply to
lotax

Thanks Alan. As it turns out, the taxpayer already took possession so it's disqualified.

Gary

Reply to
Gary Goodman

Art, investment property includes artwork so a painting would qualify.

Reply to
Gary Goodman

Investment property only includes art that is held for investment. Not all art is held for investment. There are cases on this subject that set out the criteria for when art is considered to be held for investment. E.g., see Wrightsman v. U.S., 192 Ct. Cl. 722 (1970)

Reply to
Alan

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