State of the Art Reverse Exchanges.
Art and Collectables
There are several key factors which Investors in these assets should take into account when contemplating 1031 exchanges:
In many cases (e.g. buying at auction or from a gallery), the acquisition strategy needed to successfully acquire desired pieces will be better supported with a reverse exchange.
Always use a 1031 Accommodator that is also an authorized reseller for sale tax purposes.
A state-of-the-art process for exchanging art and collectables generally requires the Accommodator to take actual title to both the Old and New assets. This is required to achieve sales tax efficiency, simplify notification requirements and deal effectively with galleries and auction firms as well as those ultimate buyers and seller who insist on anonymity.
Insist on state-of-the-art asset security for both cash and title to assets held by the Accommodator.