LKE Program Implementation

LKE Program Implementation

LKE Program Implementation

Increased Cash Flow for Companies that Routinely Sell Business-Use Assets 

A Like-Kind Exchange Program (LKE Program) is an ongoing program involving multiple exchanges of business-use assets under section 1031 of the Internal Revenue Code.  Any company that regularly sells heavy equipment, vehicles, or machinery can recognize significant tax savings.  The benefits of an LKE Program include:

  • a mechanism to defer a substantial amount of tax gain,
  • increased cash flow,
  • lower borrowing costs, and
  • an alternative source of funding.

Our experience in implementing LKE Programs allows you to quickly begin to recognize these benefits.  The WTP engagement team is led by Ron Hodgeman, a tax attorney who has dedicated his entire career to LKE Programs.  Ron has been implementing LKE Programs since the mid-1990s and has substantial experience both as a tax advisor and a qualified intermediary.

The implementation of an LKE Program should focus on three things:  (1) maximizing the tax deferral with the least amount of tax risk, (2) providing the ultimate level of funds security, and (3) being non-disruptive to your operations and customers.  To achieve these three goals, our implementation includes the below steps.

    1. Initial on-site meeting to provide your team with an overview of the rules and requirements of an LKE Program
    2. Identification and resolution of tax and business issues.
    3. Implementation of process changes, including the written notification of the assignment to the QI.
    4. Qualification for the safe harbors provided in Revenue Procedure 2003-39.
    5. Review of the Master Exchange Agreement.
    6. Banking structure and Qualified Intermediary functionality.
    7. LKE software implementation and training.
    8. Data requirements and file transfer.
    9. Testing the accuracy of the depreciation and gain/loss calculations.
    10. Preparation and sign-off on the final written deliverable.

 We also have the experience to provide the following services to you after the successful implementation of your LKE Program.

  • Submission of a private letter ruling (PLR) request
  • LKE Program support services
  • IRS audit support

WTP Exchange’s LKE Programs provide the highest level of funds security, while being non-disruptive to your operations and customers.  Our program enables businesses to structure hundreds, if not thousands, of Like-Kind Exchanges in an efficient manner.


Are you prepared to deal with the unexpected? Can you quickly make the right decisions to protect the integrity of your LKE Program?