For people that have fleets of vehicles like cars, trucks, and school buses a program exchange or master ongoing exchange program can be a very valuable tax strategy.
How it Works
Here’s how it works - you sell vehicles in your fleet that may be in there for 2-4 years. You dispose of each of those vehicles as part of a 1031 exchange and line up new acquisitions - new cars, trucks, and so forth that come into the fleet that are like-kind within the 45 day or 180 day exchange period.
The idea is that every disposition of a car or truck is a 1031 relinquished property and that gets matched up with every acquisition of a new car or truck.
The benefits are that you get to keep the time value of that money that would otherwise go out the door in unnecessary taxes and keep that capital working in your business so that you can expand and grow your business.
So delay the recognition of gains as much as possible by incorporating a program or plan that every disposition is a tax-deferred 1031 sale, and every acquisition is the completion of a 1031 exchange. By doing this, owners of fleets of trucks, cars, or school buses can maximize the tax efficiency of their operation and have more money to expand and grow their business.
- 1031 Hotline: If you have questions about master program exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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