As with any business asset the cost of maintaining an older aircraft may necessitate it being replaced with a newer model. Also, business demands may require your company to replace a relatively new aircraft with a larger or longer range aircraft. In most instances a “recapture” tax liability is generated whenever a depreciated aircraft is sold and, unlike other types of personal property assets, many types of aircraft also appreciate in value, which increases the client’s taxable gain upon sale. The complexity of aircraft exchanges and the numerous special circumstances that may occur in this type of exchange requires a Qualified Intermediary with substantial expertise and experience. In addition, due to the often overriding business considerations in aircraft exchanges the vast majority are structured as reverse exchanges, which require that IPX1031^® hold title to either the new or old aircraft pending the completion of the exchange. As the national leader in reverse exchanges you can depend on IPX1031^® to provide the necessary proficiency in aircraft exchange issues essential for a properly structured and executed exchange.