1031 Exchanges by Equity Advantage Incorporated

It is relatively unknown that the 1031 exchange process can be utilized to defer taxes on business assets. In fact, it is possible to create a Master Exchange Agreement to facilitate the deferral of a continual flow of sales and purchases of business equipment. In 2003, the IRS outlined a safeguarded procedure (Rev. Proc. 2003-39) that allows a company with repetitive dispositions and acquisition of capital equipment to set up a Master Like Kind Exchange program (Master LKE). Unlike a traditional single exchange, the Master LKE creates a cost effective method to exchange hundreds or even thousands of smaller assets relatively lower gains under a streamlined process to reduce former time consuming method. Thus, allowing a company to take full advantage of the 35% deferral of taxes on equipment sales and purchases. Business can benefit from this program by significantly lowering their taxes, increasing their cash flow, reducing costly paperwork, and ultimately increasing their long term profits. This can all be accomplished without significantly altering their current business processes.

To understand this program in greater detail, please call our offices at 1 (800) 735-1031.