The American Truck Dealers (ATD) are looking for input from the industry 0n the effects of the the repeal of like-kind exchanges (LKE) in the recent federal tax reform law.
Historically, truck dealers and their customers have used LKE to defer the recognition of gain on the exchange of existing business assets (i.e. older leased trucks) when replacing them with new products (i.e. new leased trucks).
The recent tax reform law repealed the LKE provisions governing exchanges of personal property (including commercial trucks) occurring after Dec. 31, 2017. ATD says it is concerned how these changes are affecting dealers and their customers. Dealers are encouraged to speak with their tax advisors to ascertain how this change may affect their tax liability, especially if they operate a leasing fleet alongside their dealership. ATD says this issue is addressed in more detail in NADA’s A Dealer Guide to the Tax Reform and Jobs Act of 2017.
ATD also asks dealers who have been affected by this change to contact Paul Dorsey with ATD Legislative at 202-547-5500 or firstname.lastname@example.org as Congress is considering “transition rules” to lessen the impact of this new tax change.