Multiple Asset LKE Programs
LKE Programs are programs involving ongoing exchanges of 100 or more tangible
personal property assets. Revenue Procedure 2003-39 provides special rules
pertaining to these repetitive exchanges.
An LKE Program benefits those who regularly replace and upgrade significant numbers
of personal property assets like tractor trailer trucks; fleets of automobiles;
construction equipment; airplanes; ships and barges; and railroad equipment. Taxpayers
are able to defer gain on these assets while improving and maximizing cash flow
available for their business operations.
Benefits of an LKE Program:
- Deferred capital gains tax
- Improved cash flow for asset acquisition
Matching Assets and Tracking Depreciation Schedules – We Make it Easy
Old Republic Exchange offers an easy one step solution to track and match assets; track gains
and losses and ensure that depreciation schedules are accurate and up to date.
Through Red Moon Solutions,
Old Republic Exchange clients may obtain the following LKE support solutions:
Steps in an LKE Transaction:
- Taxpayer enters into Master Exchange Agreement with Qualified Intermediary (“QI”).
- Taxpayer assigns to QI the right to sell and purchase its assets.
- Assets are sold and proceeds are deposited with QI.
- Taxpayer identifies like kind replacement property within 45 days after the date of the first disposition.
- QI uses proceeds to purchase replacement assets for Exchanger.
The Old Republic Exchange Advantage:
- Staff of attorneys dedicated to assisting you with your exchange questions
- Experienced Banking department dedicated to providing efficient and timely management, holding and disbursement of funds
- Wholly owned subsidiary of a 13.5 billion international corporation
- Written Guarantee of funds provided by Old Republic National
Disclaimer: The above described LKE software solution is a
product of Red Moon Solutions, LLC, which is not owned by or affiliated with Old Republic Exchange.
Old Republic Exchange makes no representations or warranties regarding Red Moon’s LKE software