Bank subsidiary's LKE program qualifies under Sec. 1031

Bank subsidiary's LKE program qualifies under Sec. 1031

In Letter Ruling 200240049, the Service ruled that a comprehensive like-kind-exchange (LKE) program providing for various transfers of relinquished vehicles, followed by acquisitions of replacement vehicles through a taxpayer's dealer network using a qualified intermediary, is a deferred exchan...

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Veröffentlicht in:The Tax Adviser 2003-01, Vol.34 (1), p.20
1. Verfasser: Kautter, David J
Format: Magazinearticle
Sprache:eng
Schlagworte:
Agreements
Automobiles
Flexibility
Laws, regulations and rules
Lessees
Letter rulings
Like kind exchange
Like-kind exchanges
Ltr. Rul. 200240049
Recognition of gain or loss (Taxation)
Sales
Sport utility vehicles
Taxation
Taxpayers
Trucks
Vans
Vehicles
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Zusammenfassung:In Letter Ruling 200240049, the Service ruled that a comprehensive like-kind-exchange (LKE) program providing for various transfers of relinquished vehicles, followed by acquisitions of replacement vehicles through a taxpayer's dealer network using a qualified intermediary, is a deferred exchange that qualifies for Sec. 1031 nonrecognition treatment. The IRS appears to have moved from viewing LKE programs with disfavor to allowing taxpayers to operate them in an efficient manner, provided acceptable procedures for handling of funds are provided.
ISSN:0039-9957