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The advantages of exchange transactions
are often overlooked when it comes to assets
other that real estate.
However many companies that depreciate equipment
for tax purposes can benefit from exchange transactions
when they replace old equipment.
Some examples include companies and leasing companies that own the following
types of equipment:
•
|
Computer |
•
|
Construction |
•
|
Farming |
•
|
Manufacturing |
•
|
Medical |
•
|
Packaging |
•
|
Printing |
•
|
Transportation |
Most equipment exchanges take one of three forms:
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|
Single
asset, big ticket exchanges such as an
aircraft or a ship
|
•
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Single
transaction, large asset value exchanges
such as several hundred rail cars, five
river barges or ten earth movers
|
•
|
Continuous
transaction, regular replacement exchanges
such as an automobile leasing company or
trucking company
|
Most exchanges make sense where the residual
value, even scrap value in some situations, would
create enough tax to warrant seeking the deferral.
A quick review of the time value of money saved
on deferring the taxes, even for a couple of
years, will show this to be true.
Contact
a banker now for
more information. Or call us at
312-960-5317.
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Equal
Housing Lender | Copyright
2007 | All
rights reserved