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Engaging in a tax-free Like-Kind Exchange of aircraft
Feb 3, 2009 | By Christopher Younger
Most aircraft owners who upgrade from one aircraft to another consider whether to engage in a tax-free like-kind aircraft exchange. The key benefit to engaging in a like-kind exchange of aircraft is the deferral of gain recognition and tax on that gain on the old aircraft for sale. In a properly implemented like-kind exchange, the aircraft owner may sell an old aircraft and acquire a new aircraft without necessarily having to recognize any gain on the sale of the old aircraft.
In the case of aircraft, this deferral of gain is often particularly important because most aircraft owners deduct depreciation on their aircraft, which lowers the owner
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