Making a 1031 exchange on a car, or, so, any sort of antique or collectible, lets you to turn that 28% percent tax liability into a tax deferral, a kind of loan from the government, but one that accrues no interest. This deferral is transferred from one piece of property to the next as long as you keep to exchange, and is collected when you decide to sell outright rather than making another exchange.

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