Trading Cars to Avoid Taxes

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

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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