Master Like-Kind (LKE) Exchange Programs


A traditional like-kind exchange transaction allows an Exchanger to defer the tax on the gain from the sale of business use or investment property. Some assets, such as an off-lease automobile (leased cars returned to the lease company) when sold, generate relatively low gain and thus are not economically feasible to place in a single exchange transaction. If, however, the Exchanger disposes of many of the same assets on a frequent basis, a “Master” Like-Kind Exchange (Master LKE) Program can be an option. A Master LKE program is designed to extend the benefits of a 1031 Exchange to the ongoing sale and purchase of like-kind personal property assets. Auto, truck and equipment lessors along with construction, trucking and rental companies are types of businesses that can benefit from the use of a Master LKE program.




A well designed Master LKE program provides an efficient and affordable way for a company to secure tax benefits with minimal changes to their corporate processes. The program provides significant tax deferral on collective annual gains. By deferring current taxes, more cash is available to fund additional purchases. The Master LKE program can also enhance a company’s competitiveness by allowing the tax savings benefits to be passed through to the customer, thus lowering pricing. The exchange specialists in the IPX1031® Multiple Asset Exchange Division will work closely with your tax, accounting and legal advisors to structure a Multiple Asset or Fleet Exchange program that best suits your business profile and implementation schedule.