CHICAGO, Aug. 27, 2014 /PRNewswire/ -- Associated Equipment Distributors (AED), the world's largest trade association for construction equipment distributors, has selected WTP Exchange, for the fourth year running as its Preferred Provider for Like-Kind Exchange (LKE) services. WTP Exchange is an affiliate company of global tax and business advisory firm WTP Advisors, which was also recently named to the Inc 500|5000 list of America's fastest-growing private companies for the fourth year in a row.
Under Internal Revenue Code Section 1031, no gain or loss is recognized when companies sell business property and acquire property that is like-kind. For AED members, this means that by taking advantage of an LKE Program, a dealer that routinely disposes of heavy equipment can reduce its current tax liability by millions of dollars – cash which can be better used to grow the business.
"Without bonus depreciation, many of our members will see taxable income spike this year unless they take advantage of an LKE program," says AED President and CEO Brian McGuire. "As our Preferred Provider of LKE services, WTP Exchange is the right firm to provide the solution."
After taking bonus depreciation for the last few years, many dealers are left holding rental equipment with little to no tax basis. A Like-Kind Exchange program lets dealers routinely replace their current fleet without having to worry about the negative tax consequences.
WTP Exchange is the only firm in the world to offer a fully-integrated LKE program solution. In addition to its world-class software, which was built on more than 25 years of LKE program experience, WTP Exchange provides LKE tax consulting services, and Qualified Intermediary (QI) services.
"Many analysts are giving comprehensive tax reform and lower tax rates a realistic chance of happening in 2017. If tax rates are lowered, an LKE program can provide a permanent benefit to AED members that act now," says Ron Hodgeman, tax attorney and LKE practice director at WTP Exchange.
"We were disappointed when the Senate Finance Committee's tax extenders bill failed back in May, and President Obama has stated he will veto the House bill if it reaches his desk. During these uncertain times, it is great to know that our members can minimize their tax liability with a trusted LKE program provider like WTP Exchange," says McGuire.
Associated Equipment Distributors (AED) is an international trade association representing companies involved in the distribution, rental and support of equipment used in construction, mining, forestry, power generation, agriculture and industrial applications. AED's 500 distributor member companies account for most of the annual sales of construction equipment and related supplies and services in the U.S. and Canada. AED is co-headquartered in Washington, D.C., and Oak Brook, Ill.
WTP Advisors is a leader in tax and business advisory services for a global marketplace. Our highly skilled professionals equipped with years of industry experience, coupled with our cutting-edge technologies, make substantive and long-term differences to an organization's profitability. WTP Advisors is headquartered in White Plains, NY, with offices across the Americas, Asia and Europe.
SOURCE WTP Advisors