WTP Exchange Selected as Like-Kind Exchange Provider for Groff Tractor & Equipment

NEW YORK, Dec. 7, 2011 /PRNewswire/ -- Groff Tractor & Equipment, one of the oldest and most respected construction equipment dealers in the nation, has chosen WTP Advisors' Like-Kind Exchange (LKE) affiliate, WTP Exchange, to implement and manage its LKE program. WTP Advisors is an award-winning global tax and business advisory firm.

Internal Revenue Code section 1031 provides that no tax gain or loss is recognized when companies sell business property and acquire property that is like-kind.  An ongoing program involving multiple exchanges of personal property such as heavy equipment and vehicles is referred to as an "LKE Program."

"WTP Exchange was able to convert our LKE program quickly and pain-free.  Now that their solution is in place, we are ready for the expiration of 100 percent bonus depreciation at the end of this year," says Michael Savastio, President and CEO of Groff Tractor & Equipment.

For the last few years, companies have benefitted from a temporary economic stimulus provision called "bonus depreciation."  Bonus depreciation allows businesses such as Groff to immediately deduct for tax purposes a substantial percentage of the cost of equipment purchases.  Equipment acquired and placed in service after December 31, 2007 and through September 8, 2010 generally qualified for 50 percent bonus depreciation.  100 percent bonus depreciation applies to qualifying assets acquired after September 8, 2010 and through December 31, 2011.

"The expiration of 100 percent bonus depreciation at the end of this month is truly a trap for the unwary.  The sale of low-to-no tax basis assets will result in substantially higher tax gains, and there will be less depreciation expense going forward to offset these tax gains.  Informed and knowledgeable companies are implementing LKE Programs now to increase cash flow and solve their impending tax problem," says Ron Hodgeman, the LKE practice leader at WTP Exchange.

An LKE program allows heavy equipment dealers, car rental companies, and others to preserve cash while the economy continues to struggle.  Any company such as Groff that routinely disposes of heavy equipment or other business assets can generally qualify for the tax savings.

"We are honored by Groff's decision to partner with WTP Exchange," says Hodgeman, "This decision solidifies our reputation as the premier provider of LKE Program solutions."

The Associated Equipment Distributors (AED), the world's largest trade association for construction equipment distributors, recently selected WTP Exchange as the AED's Preferred Provider for Like-Kind Exchange (LKE) services.

WTP Advisors has a reputation for ensuring that each client engagement involves a cadre of highly talented and experienced tax professionals, hands-on customer service, and software built on the latest technology.

Groff Tractor & Equipment, Inc. is a full line construction equipment dealer who has been serving Pennsylvania for over 50 years.  Our Corporate Headquarters are located in Mechanicsburg, with branch locations in Ephrata, State College, New Stanton, Ebensburg, and Cranberry Township. Groff Tractor & Equipment distributes Case, Wirtgen, Hamm, Vogele, Kleeman, Wacker, AGL, Interstate, Atlas Copco, Liebherr, Takeuchi, and a complete line of construction parts and supplies.

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, N.Y., with offices across North America, Asia and Europe.

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.

SOURCE WTP Advisors