To help improve cash flow, fleets can implement a tax strategy called a like kind exchange (LKE) program.
Internal Revenue Code Section 1031 allows taxpayers to defer federal income taxes on an exchange of like-kind properties held for business or investment purposes.
By taking advantage of a LKE program, a sale of a rental vehicle — that is followed within 180 days by a purchase of another rental vehicle — can qualify as a tax-deferred exchange.
Click here to learn more about a LKE program: http://www.autorentalnews.com/channel/rental-operations/whitepapers/detail/like-kind-exchange-lke-programs-a-case-study-in-cash-flow-improvement.aspx
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