Like kind exchanges (LKE)
The like-kind exchange (LKE) provisions under IRC Sec. 1031 allow companies to defer the recognition of taxable gains by exchanging relinquished (sold) business assets with new, similar assets. An LKE may help you defer gains from the sale of:
- Trade or business property, such as: automobiles, heavy equipment, trucks, jets, railcars, manufacturing equipment
- Real property used in business, such as land, office buildings, warehouses, manufacturing facilities, R&D facilities
- Real property held for investment
- Intangibles, such as patents and copyrights
As tax professionals with over 10 years of like-kind exchange experience, PwC offers a comprehensive approach that addresses the tax compliance, technology and operational issues inherent in establishing an LKE program. This helps to reduce friction between your long-term tax strategy for 1031 deferrals and the ability of the technology to meet the IRS' requirements for your LKE program.
"We conducted an extensive RFP process and spent considerable time with several potential providers and consulted their references. Ultimately, the outstanding tax technical expertise in LKE and extensive practical experience with large automotive fleet LKE programs were the deciding factors in selecting PwC. This was a significant undertaking for us and it was important to have someone with extensive, real-world experience. They brought a real ‘can-do’ attitude and offered practical solutions to implementing LKE in our business."
— Jim Ryan, Dollar Thrifty Automotive Group, Inc.
For more information about PwC LKE, please contact one of our product champions listed above.