Transportation

Transportation is a vibrant industry driven to consistently improve speed and efficiency. A fast-paced marketplace such as this requires a strategic allocation of resources in order to compete effectively. A Tax-Deferred Exchange can help maintain a taxpayer's capital and reinvest in the business without losing valuable resources to taxes.

Vehicle Leasing

Thousands of vehicles come off lease every day. A Tax-Deferred Exchange will allow a qualified taxpayer to sell quickly depreciated off lease vehicles and purchase new vehicles for lease without incurring a capital gains liability. Exchange Services Group has worked with taxpayers to design a Master Auto Lease Exchange Program for a high volume business that allows for maximum investment of off lease sales proceeds in a cost efficient manner.

Fleets

Trucking, construction, oil companies and limousine service fleets are only some of the businesses that frequently sell low basis assets in exchange for models that are more advanced and efficient. A trucking company can sell an old cab and trailer for a new cab and trailer while deferring the capital gains tax liability. A Tax-Deferred Personal Property Exchange allows a business to reinvest the proceeds from trucks, autos and equipment with high capital gain into new more cost efficient trucks, automobiles or equipment that keeps a business competitive.

Railroad Equipment

The railroad industry has diversified into much more than movement of products. It includes the sale and lease of real estate, as well as equipment, and often includes a partnership with other transportation areas such as trucking to improve efficiency. Common Equipment Exchanges include assets such as rolling stock, cranes, trucks, generators, automobile racks, switching gear and track. Our exchange experts can create a Like-Kind Exchange Program for all business and investment property and help you defer your gain, allowing for further investment in your business.

Many customers need to purchase their new asset before a buyer for the old asset has been secured. Exchange Services Group can purchase your new asset until the old asset can be sold. Revenue Procedure 2000-37, released in September 2000, now gives the taxpayer the flexibility needed by using a Exchange Accommodation Titleholder (“EAT”) such as a Limited Liability Corporation to hold title to the relinquished or replacement property while it is held or developed for later transfer. Exchanges conforming to this procedure, also known as Reverse Exchanges, are becoming increasingly popular since the release of this new safe harbor.

The exchange experts at Exchange Services Group have extensive experience in the sale and purchase of personal property. Our team can work with you to develop a tax-free exchange to best utilize all the assets from your sale within the requirements of the tax code.

If you would like more information about how Exchange Services Group can assist you, please call John Lamberts toll free at 1-800-560-8485.