Category: ‘Asset Management’

LKEs and Bonus Depreciation: a case study

September 23rd, 2009 by Sam Smith

Which is better for the bottom line, LKEs or no LKEs? Well, that's an obvious one. Okay, which is better, LKEs or Bonus Depreciation? That's a trick question, because it's not an either/or. However, in an environment where you have have Bonus, you're running 1031 exchanges on some assets, and there's "Bonus hangover" and uncertainty about future tax rates to think about, it helps to take a good look at a real-world case that illustrates ... (Read the rest of this entry)

Filed under: 1031 Exchange Tips, Asset Management, Business Process

Are LKEs the “tail wagging the dog”? New CED article from Brent Abrahm

September 11th, 2009 by Sam Smith

Accruit CEO Brent Abrahm has authored a new analysis for CED Magazine looking at the results when companies don't integrate tax issues into their strategic thinking. This is a great article than includes a lot of potentially valuable insight for businesses in a wide range of industries. If the case study he discusses in the article suggests ways your business might be able to generate some extra cash flow, you might also have a look at the new Accruit ... (Read the rest of this entry)

Filed under: 1031 Exchange Tips, Asset Management, Business Process

Accruit - AED’s Preferred Provider for 6th Consecutive Year

August 3rd, 2009 by Jim Burnett

Associated Equipment Distributors (AED) and Accruit have announced the continuation of their long-standing relationship which provides Accruit's industry-leading services to the heavy equipment industry. Over the course of this six-year relationship, Accruit has grown to become the leading provider of 1031 Like-Kind Exchanges, thanks in large part to the strong relationship with AED.  Working in consultation with the leaders of the heavy equipment industry, Accruit has consistently developed innovative tax services specifically designed ... (Read the rest of this entry)

Filed under: Accruit News, Asset Management, Business Process, Client Service, Leadership, Press Releases, Security

The new Accruit Basis Projection - service drives significant cash flow value for your business

July 31st, 2009 by Sam Smith

Let's say you're an equipment dealer. You have a qualified customer who wants to buy a motor grader. You have several on the lot. So your sales guy shows him what's available and the customer narrows it down to two. They're the same year, they have about the same number of hours in service, and after a pretty detailed inspection he can't tell much difference. From the sales guy's perspective it's a push. The two graders ... (Read the rest of this entry)

Filed under: Accruit News, Asset Management

Are 1031 exchange programs the “tail wagging the dog”? Hardly…

June 24th, 2009 by Brent Abrahm

grand-mesa-equipmentFamous last words:

  • "We leave all our tax strategies until the end of the year."
  • "We only have one person worrying about tax issues."
  • "We're not going to let tax strategy determine how we run our business. That's the tail wagging the dog."
Believe it or not, I've heard variations on each of these themes in recent months. It's hard to imagine a competent, responsible CEO opting to jettison valuable assets, discard powerful ... (Read the rest of this entry)

Filed under: 1031 Exchange Tips, Asset Management

Now is the time to think about 1031 exchanges

May 26th, 2009 by Joe Lane

Section 1031Why put a tax-deferral program in place when taxes are low? Lessors and other savvy owners of business assets understand the financial benefits of a well-managed, programmatic 1031 Like-Kind Exchange (LKE) system. But "bonus depreciation," a currently (perhaps temporarily) low capital gains tax rate, a reduced effective overall tax rate resulting from reduced corporate profits, and the prospect of increasing tax rates in the future are all ... (Read the rest of this entry)

Filed under: 1031 Exchange Tips, Asset Management

Economic stimulus implications: Bonus Depreciation recapture is coming

April 23rd, 2009 by Jim Burnett

Recently, I came across an article written by Hal Vandiver for the Material Handling Industry of America regarding the current Economic Stimulus Package and its impact on asset-owning businesses. Mr. Vandiver described the initial benefit of this measure very well, including some mathematical analysis of asset purchases that occur in 2008 or 2009. Put simply, the continuation of Bonus Depreciation and increased Section 179 deductions as economic stimulation have ... (Read the rest of this entry)

Filed under: 1031 Exchange Tips, Asset Management, Regulation and Legislation

Reverse 1031 exchanges aren’t as complicated as you think

April 21st, 2009 by 1031 Tips

clientservicegroup1031 exchanges are typically of the "forward" variety - they start when you sell an asset and then buy a replacement asset of like-kind.  But more and more our clients are finding themselves in the position of needing to purchase a new asset before they sell their old one.  This happens for a variety of reasons; companies may need new equipment in service before they can remove the old equipment, for ... (Read the rest of this entry)

Filed under: Asset Management

Good news for leasing industry: IRS rules that cars are like-kind with light-duty trucks

April 20th, 2009 by Moore McLaughlin, Esq., CPA, CES(r)

The IRS has recently confirmed in a private letter ruling (PLR 200912004, released on March 20, 2009) that cars and light general purpose trucks ("light-duty trucks") are of like-kind for purposes of Section 1031.  Specifically, the IRS ruled that cars, light general purpose trucks (for use over the road having actual unloaded weight of less than 13,000 pounds) and vehicles that share characteristics of both cars and light general purpose trucks (e.g. crossovers, sport ... (Read the rest of this entry)

Filed under: 1031 Exchange Tips, Asset Management, Internal Revenue Code, Regulation and Legislation