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 a like-kind exchange ("LKE") program to access the gain deferral allowed under Section 1031. Existing tax rules require the involvement of a third-party qualified intermediary ("QI") to facilitate the exchanges and to hold the cash from the disposal of the assets until it is needed to purchase replacement assets.

PwC-eLKE is a comprehensive Like Kind Exchange solution that enables your company to capture LKE tax benefits in an automated and cost effective manner. Our national team of dedicated tax and technology professionals can assist your company in designing and implementing an LKE solution that works best for your leasing business, without intruding on your customer or vendor relationships and without substantial changes to your current business or IT processes.