Like-Kind Exchange Matching
Maximize the tax benefits allowed under IRS Code Section 1031 and increase your bottom line with Like-Kind Exchange Matching (LKEM).
The theory behind like-kind exchange allows property owners to reinvest their sales proceeds into another like-kind property without subjecting the transaction to taxation. Red Moon Solutions' (RMS) focus is to enable clients to take advantage of the like-kind exchange provisions under Internal Revenue Code Section 1031 and realize the following benefits:
Defer Capital Gains Taxes
Like kind exchange allows corporations to defer taxable gains and the payment of federal income taxes and some state taxes on like-kind exchange transactions.
Improve Cash Flow
Like-Kind Exchange provides the opportunity to significantly improve cash flow and after tax profitability.
Improve Competitive Position
All clients can improve their competitive position in the marketplace when they reinvest their tax savings in newer income property.
RMS Like-Kind Exchange Solution
The RMS comprehensive offering meets the requirements of small to mid-size companies with few exchanges or the needs of very large corporations with a significant number of 1031 exchanges. A variety of businesses have successfully used our Like Kind Exchange solution to automate the 1031 matching process and document millions of exchanges. All of our clients are assigned individual account representatives to receive personalized, quick responses to their needs. This approach results in a simple, reliable, safe and profitable like-kind exchange process.
The RMS solution includes the following elements:
Like Kind Exchange Software
RMS utilizes its Like Kind Exchange (LKE) software to enable our clients to obtain the benefits of the like-kind exchange rules, under Section 1031, which allow the deferral of gain recognized on the sale of personal property.
Like Kind Exchange Transaction Processing
RMS performs customized LKE data processing services on the schedule desired by the client. This service includes loading client data into our LKE software, generating LKE matches, and safeguarding the data. Our solution completely outsources and automates the LKE process and the hardware/software support.
Like Kind Exchange Reporting
RMS delivers all necessary reports from our comprehensive list of tax management and tax filing reports specifically tailored to monitor a like kind exchange program and comply with the IRS filing requirements, including Form 8824, in accordance with the schedule specified by the client.
Many companies have not taken advantage of the like kind exchange tax law for personal property due to the complexity of the regulations and the cost of administering like kind exchange programs. RMS eliminates the headaches associated with taking advantage of IRS Code Section 1031. No hardware, no processing, and no resources are necessary to automate all your Like Kind Exchange transactions and matching. Simply provide RMS the data files and our senior tax professionals take it from there. We fully automate the upload of data and all appropriate calculations, including MACRS and AMT depreciation, short-year, and jurisdiction dependent requirements. RMS provides everything needed to complete the 1031 exchange tax lifecycle and to respond to management, IRS and regulatory agencies, at a price you can afford.