PwC, in conjunction with Accruit, offers a comprehensive 1031 like-kind exchange (LKE) solution for the rental and leasing industries. PwC assists its clients in implementing and operating LKE programs that can help enhance cash flow and increase margins.
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. Businesses with extensive asset portfolios that routinely dispose of assets on a regular basis at a gain (e.g., equipment leasing or rental car companies) may decide to set up an LKE program to access the gain deferral allowed under Section 1031.
PwC currently manages LKE programs for more than 150 companies across 20 industries. Together with Accruit, PwC has developed an integrated and cost-effective service that integrates LKE tax consulting and compliance process with Accruit’s patented 1031 qualified intermediary process. Existing tax rules require the involvement of a third-party qualified intermediary to facilitate the exchanges and to hold the cash from the disposal of the assets until it is needed to purchase replacement assets.
PwC can help your business team to customize an LKE program solution to meet your specific needs, and can provide comprehensive IRS support in the event of a program audit.
For more information on PwC’s like-kind exchange services, visit www.pwcelke.com or call (877) 479-2882.
For additional articles and news from the Auto Rental News May/June magazine issue, click here.