Like Kind Exchange
Using SuperTRUMP, you can price in the benefit of the Like-Kind-Exchange (LKE) of an existing asset or assets into a new transaction. You can either use the benefit to lower the payment to the customer and be able to still earn your required profit or share/keep the benefit to enhance your yield. All choices are measureable with the Like-Kind-Exchange feature in SuperTRUMP.
SuperTRUMP calculates the "Step-in-the-Shoes" LKE benefit, the approach most widely recognized in the industry. The calculation quantifies the tax benefit based on one or more maturing assets for the LKE:
- Sales Proceeds from each maturing asset(s)
- Original equipment cost of each maturing assets(s)
- Former depreciation inputs for each of the maturing assets(s)
With SuperTRUMP's LKE feature, you can model specific transactions or use it for determining the potential benefit for an entire company program.
