Hartson Oil is an independent energy firm focused on the exploration, development, acquisition and production of domestic natural gas and crude oil. Like most companies in this industry, Hartson routinely buys and sells a variety of corporate assets, including real estate and tangible assets (vehicles, drilling and production equipment, piping and casing).
THE PROBLEM
Hartson faced a complex exchange scenario. The company planned to purchase multiple strings of tubing and casing over a period ...
(Read the rest of this entry)
| Accruit Exchange Blog |
| Case Studies |
| How Accruit’s patented process works for you |
| Accruit LKE programs |
| Find out about our record of stability and accountability |
Category: ‘Case Studies’
Case Study (Complex Single Exchange): Hartson Oil
March 2nd, 2010 by Sam SmithCase Study (Simple Single Exchange): Janssen Brothers Engineering & Construction
March 2nd, 2010 by Sam Smith
Janssen Brothers Engineering & Construction (JBEC) is a large, top-rated contracting firm based in the Midwest. They routinely buy and sell a variety of heavy equipment in the course of business.
THE PROBLEM
In 2009 JBEC decided to move several older cranes and to purchase a new model from a local dealership. The existing cranes were fully depreciated for tax purposes, and the company anticipated a hefty tax bill upon sale.
THE ACCRUIT SOLUTION
JBEC, which ...
(Read the rest of this entry)
Case Study: American Value Automotive
February 9th, 2010 by Sam Smith
Accruit 1031 like-kind exchanges drive multi-million dollar benefit for major auto rental licensee...
American Value Automotive* (AVA) is a large licensee serving the western United States. Their portfolio includes light trucks and automobiles (cars comprise roughly 95% of their assets).
The Problem
AVA sells 3,000 vehicles per year, generating $72MM in revenue. The assets have a five-year MACRS life, but the average hold time is just six months. The company’s combined state and federal ...
(Read the rest of this entry)
Oil & Gas: 1031 exchange program generates massive cash flow and asset management benefit for energy industry giant IconX
October 16th, 2009 by admin
IconX Energy* is one of the world's largest energy companies, providing customers around the globe with fuel for their automobiles, electricity for their homes and a wide range of petrochemical products for every phase of their lives. As with any large enterprise, IconX is constantly buying and selling large quantities of assets, and in the process, dealing with the complex tax implications of these activities.
The Problem
IconX had historically employed 1031 like-kind ...
(Read the rest of this entry)
Case Study: 1031 Exchanges and Vintage Motorcars
July 17th, 2009 by Sam Smith
- Classic cash strategy helps vintage automobile collectors keep $500,000 in the family...
The Situation
Since his retirement from professional racing, Joe Croydon and his wife Marilynn* have been avid collectors and restorers of vintage Grand Prix motorcars (including several classic models from Maserati, Lotus and Tyrrell). As they became more deeply involved in this hobby, the Croydons amassed a premier collection of superbly restored vintage Formula 1 and pre-F1 cars. In watching ...
(Read the rest of this entry)
Case Study: Blue Jay Energy
June 25th, 2009 by Sam Smith
The Situation
Blue Jay Energy (BJE) focuses on the exploration, development and production of natural gas and crude oil in several regions of the United States. The company currently has proved reserves in excess of one billion cubic feet of gas equivalent and a reserve-to-production ratio of over 10 years.
The Problem
As is common with energy exploration businesses, Blue Jay’s holdings include some underperforming fields. It recently decided to divest an oil and gas ...
(Read the rest of this entry)
Case Study: Silver State Equipment
May 29th, 2009 by adminSilver State Equipment* (SSE) has, as its primary lines of business, the rental and sale of heavy equipment. With several local branches across Nevada, SSE has been especially successful renting equipment to both commercial and residential builders. Given the high usage rates associated with their rented equipment, they typically upgrade their equipment every three years. Silver State considered multiple cash and asset management strategies, including LKEs and Bonus Depreciation. The results associated with one of their most common transactions, the sale ... (Read the rest of this entry)
Automotive Scenarios Case Study
May 29th, 2009 by adminCASE STUDIES: Automotive Scenarios
To get a real feel for the financial impact of a Like-Kind Exchange (LKE) program, it is best to review the 5-year cash flow benefit for certain volume levels. Every business is unique so each implementation of an LKE program is slightly different; however, these examples should provide a general understanding of the benefits.
Scenario 1: 100 Cars Sold per Year
ASSUMPTIONS:
Annual Rental Car Sales: $1,800,000
• Tax Life: 5 Years
• ...
(Read the rest of this entry)
Trucking Industry Case Study
May 29th, 2009 by adminCase Studies: Trucking Scenarios
To get a real feel for the financial impact of a Like-Kind Exchange (LKE) program, it is best to review the 5-year cash flow benefit for certain volume levels. Every business is unique so each implementation of an LKE program is slightly different; however, these examples should provide a general understanding of the benefits.
Scenario 1: 72 Tractors Sold per Year
ASSUMPTIONS
• Annual Tractor Sales: $1,800,000
• Tax Life: 3 Years
• ...
(Read the rest of this entry)
Small Equipment Industry Case Study
May 29th, 2009 by admin
Case Study: Equipment Dealer Recognizes $2.5M Increase in Cash Flow with a Like-Kind Exchange Program
Primary Concern
In the years 2002 through 2004 the client took advantage of Bonus Depreciation. This created additional cash flow for those years but the expiration of Bonus in January 2005 meant the client would soon have to pay that benefit back.
Challenge
The client's financial department and tax advisor were challenged by leadership to uncover a method to mitigate ...
(Read the rest of this entry)