In November 2010, PwC and Accruit joined forces to provide comprehensive 1031 like-kind exchange (LKE) programs that combine PwC’s LKE tax and technology capabilities with Accruit’s qualified intermediary (QI) expertise.
With more than 30 years of like-kind exchange experience between them, the two companies deliver integrated 1031 like-kind exchange program services to more than 170 clients across 20 industries.
Section 1031 of the Internal Revenue Code allows a company to defer taxes associated with the sale of business or investment assets provided that the revenue from the sale is reinvested into other assets that are of like-kind to those sold. This is known as a like-kind exchange (LKE). Companies conducting multiple like-kind exchanges each year or complex personal property exchanges can benefit from a like-kind exchange program in which exchanges are managed on an ongoing, programmatic basis.
Said Brent Abrahm, founder and CEO of Accruit, "Our partnership with PwC has been of great value to the marketplace. The synergies in tax and QI services, as well as the fact that both of our companies prioritize the role that technology has to play in the industry, have enabled us to deliver a robust solution that is otherwise unavailable."
In 2015, two prominent studies emerged citing the benefits that like-kind exchanges bring to the U.S. economy. One study, underwritten by the Federation of Exchange Accommodators, found that a repeal of like-kind exchanges from the U.S. tax code would result in a slowing of economic growth and a reduction of GDP. The other, authored by finance professors Dr. David Ling and Dr. Milena Petrova, concluded that like-kind exchanges encourage investment, lead to job creation, and contribute significantly to federal tax revenue.
According to David Fowler, co-leader of PwC's LKE Services practice, "Fifteen years ago, we set out to create the leading LKE practice in the industry by leveraging our tax expertise with cutting edge technology and understanding the importance of excellent customer service to be successful in the marketplace. Our joint business relationship with Accruit has helped us achieve our goal, and we look forward to serving our clients with Accruit for the next 15 years."