Account Info Regional Info

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 application.