Philadelphia Business Tax Team of counsel, David Shechtman, was quoted in an article published on the front page of the New York Times regarding the use of like-kind exchanges as a tax deferral technique for major corporations. David’s practice includes representation of various taxpayers and so-called “qualified intermediaries” regarding like-kind exchanges. He has structured exchanges for major corporations, real estate investment trusts and banks, including Shell Oil Company, Hertz Corporation, Health Care REIT, Wells Fargo and Citibank. As noted in the article, David also is a former Chair of the ABA Tax Section Committee on Sales, Exchanges and Basis.
The article, “Major Companies Push the Limits of a Tax Break,” explores the expanded use of exchanges, which have been part of tax law for 90 years, noting that a tax break originally intended for farmers who swapped land or livestock is now regularly used by major corporations and large real estate owners. The article quotes David regarding the technical requirements for avoiding “constructive receipt” of exchange funds and reports on a recent federal trial in New York in which it was alleged that one exchange intermediary company allowed its clients to “push the boundaries” on these requirements.
To read the article, click here.