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The IRS has reversed it's position on the availability of the Section 1031 Exchange to Intangibles that may be valued separately & apart from Goodwill. Thus, since the assets of an Insurance Agency are largely intangible, it would be possible to structure a transaction that would qualify for deferring the gain on the sale. It would however require careful planning both in identifying and determining the value of the assets being sold as well as the assets being purchased. Apart from this issue, there are the general requirements for a 1031 exchange that require that they be strictly complied with if the transaction is to qualify for the deferral of gain on the transaction.
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