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PwC-eLKE


Companies that recognize taxable gains on the sales of business assets may be unnecessarily spending valuable investment dollars on federal income taxes. The Like Kind Exchange (LKE) provisions under Internal Revenue Code Sec. 1031 allow companies to defer the recognition of taxable gains by exchanging relininquished (sold) business assets with new, similar business assets.

 

While companies have often utilized like kind exchange for real property, many companies have not not taken advantage of like kind exchange for personal property because of the complexity of IRS regulations and the cost of administering like kind exchange programs.

To address this issue, PricewaterhouseCoopers developed PwC-eLKE, a comprehensive solution that combines tax expertise and technology to simplify and automate the administrative processes needed to satisfy the stringent IRS Like Kind Exchange requirements. Companies utilizing PwC-eLKE can automate the deferral of taxable gains, reduce current federal income tax and significantly improve cash flow without substantially changing their current business processes or devoting any incremental tax or IT resources.

Once implemented, LKE benefits remain in effect for as long as the taxpayer maintains its investment in the portfolio of qualifying assets. In a stable portfolio, the tax deferral will build toward an amount that will approximate the taxpayer's effective tax rate times the cost of the portfolio. This benefit allows companies to improve cash flow and reduce borrowing costs.  

Executive Summary

Through the implementation of a Like Kind Exchange (LKE) program, it is possible to defer the recognition of that gain as long as you continue to replace disposed assets. More...

The Issue

When companies dispose of assets used in their trade or business, they often recognize taxable gains; this may result in unnecessary income tax liability.  More...

The Solution

PwC-eLKE is a comprehensive Like Kind Exchange solution. The PwC-eLKE software combined with our national team of dedicated tax and technology professionals are ready to assist your company in designing and implementing LKE solution for your business. More...

See PwC-eLKE

Take a tour of the PwC-eLKE software and use a benefit calculator that estimates the potential benefits that your company may derive from Like Kind Exchange. More...

Education

Read about the legal and regulatory details about Like Kind Exchange rules and access materials from past PwC-eLKE User Conferences. More...

Other LKE Opportunities

PricewaterhouseCoopers offers additional exchange services, including CapEx and Like Kind Exchange for Intangible Assets. More...

About Us

Learn more about the teams who provide Like Kind Exchange and other PricewaterhouseCoopers services. More...

Contact the PwC-eLKE Team

Contact us to receive more information about PwC-eLKE. More...

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