We are in a unique last 18mo with inflation and car shortages causing crazy car prices.
I have a scenario I'd like to ask. (using super round numbers)
I have a RED car, and I would like to sell it and buy an identical BLUE car.
I bought 5 years ago for $10k. With the inflation and the use car market the way it is now, its worth $20k. I sell the RED car for 20k, and buy (or trade) for the identical BLUE car for 20, (which also used to be 10k a few years back)
So now I essentially have the same car, worth the same amount but I have to also pay 20% long term cap gains tax on the $10k for this "swap"????
I believe there used to be a 1031 rule for this, but are we now getting punished lol?
