Tax Free Exchange Package - Arkansas 2025

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A tax-free exchange under Section 1031 (1031) of the Internal Revenue Code (IRC) occurs when a person (Exchangor) desires to sell property (Relinquished Property) and replace it with similar, or like-kind, property (Replacement Property) almost immediately.
Sales tax holidays usually exclude business purchases. Sales tax holidays can take place at any time of year, but the most popular time for them is in July and August. This is when back-to-school sales tax holidays take place.
Accessories include handbags, cosmetics, jewelry, umbrellas, and more. Most school supplies, such as book bags, binders, paper, crayons, pencils, and rulers, are also tax-exempt. In the 2021 Regular Session, we passed Act 944, which extended the sales tax holiday to include electronics.
Articles of clothing, footwear, or school supplies if the sales price of a single item is less than $100. The following items when used for hunting: archery equipment, firearm and archery cases, firearm and archery accessories, hearing protection, holsters, belts, and slings.
Some goods are exempt from sales tax under Arkansas law. Examples include prescription drugs, purchases made with food stamps, and some farming equipment.

People also ask

1031 Exchange Rules in Arkansas The IRS allows Arkansas investors to sell rental properties, business properties, and land that was purchased for investment purposes and defer all capital gains taxes via IRC Section 1031.
Tax Deferral Benefits A 1031 exchange allows you to defer taxes, which is the main advantage of doing one. Youre deferring capital gains tax after selling a property and picking up a like-kind better property that can potentially cash flow way more than the previously owned one.
State and local sales tax will not be collected during this 48-hour period on the sale of: (1) Clothing and footwear if the sales price is less than one hundred dollars ($100) per item; (2) Clothing accessories and equipment if the sales price is less than fifty dollars ($50) per item; (3) School supplies; (4) School

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