Tax question

Let me start by saying that I am not a tax expert.



I have always wondered if the sale of scrap metal could be considered a capital gain as opposed to ordinary income. Everything I have found says no. If it could be, you would probably save a considerable sum in self employment tax.

With regards to the second part of the question, you would have to read up on IRS Section 1031 Like-Kind Exchanges. My gut feeling is that this wouldn't work, but I may be wrong.