Over the years we have had a lot of fun creating entities for the acquisition of real property for clients. Typically, the new property is parked while the existing property is sold. We have just performed this task for a client with personal property. Personal property exchanges are limited to items with certain standard industry general asset classification codes. In our practice, we have handled major pieces of equipment such as log skidders and bulldozers, commercial fishing boats, and laundry equipment.

Our current project is to acquire a truck and chassis and have it retrofitted with drilling equipment. Once it is ready to be placed in service, the client’s existing “like-kind” truck mounted drilling equipment will be sold and the proceeds used to acquire the new equipment from our build-to-suit entity. The same identification rules apply as in a real property exchange and the timing remains the same; identify in 45 days and acquire within 180 days.