Trading Cars to Avoid Taxes

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Legal Files” gets a lot of questions, but the most frequent is: “How can I do a 1031 exchange with my collector car?”

This is not much of a surprise. Many readers who have owned their collector cars for some time have realized significant appreciation they want to cash in on. Then they discover that income taxes will take a very large bite out of the successful sale.

Fortunately, for those who have owned their collector car for at least Read More

John Draneas

SCM Columnist

John practices law in the Portland, OR, suburb of Lake Oswego, where he focuses on tax and estate planning, business organizations and transactions, and representation of collector-car owners. He is a past president of the Oregon region of the Porsche Club of America and served as the chairman of the PCA’s 2006 parade. His collection includes two Porsches, a Ferrari, an Alfa, a Lotus, a BMW daily driver, a John Deere tractor — and one increasingly famous Jaguar E-type. This month’s “You Write, We Read” on p. 20 is full of SCMer advice on whether Draneas should restore his Jag.

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