Why put a tax-deferral program in place when taxes are low?
Lessors and other savvy owners of business assets understand the financial benefits of a well-managed, programmatic 1031 Like-Kind Exchange (LKE) system. But “bonus depreciation,” a currently low capital gains tax rate, a reduced effective overall tax rate resulting from reduced corporate profits, and the prospect of increasing tax rates in the future are all causing asset owners to question whether a 1031 LKE program makes sense for them at this time. The simple answer – regardless of current taxable status – is probably a resounding “yes.”
Bonus depreciation is intended to provide additional incentive for investment in capital assets, just as the original