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Did Eighth Circuit Bulldoze Caterpillar Dealer’s Like Kind Exchanges?

Did Eighth Circuit Bulldoze Caterpillar Dealer’s Like Kind Exchanges?

It is a really interesting problem. Deferring the tax is like getting an interest free loan of as much as $200,000 come next April which will be repaid over 5 years more or less depending on circumstance in those years. Who knows? Maybe rates will be higher. The financing from Caterpillar is equivalent to an immediate interest free $750,000 loan for six months.

Of course, NC tried to get both. It is interesting to wonder what they would have chosen if they knew they could only get one. I’d probably take the $750,000 bird in the hand in which case the aggressive position they took ends up being nothing ventured nothing gained if you ignore the mountain of work that somebody is going to have amending returns.

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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.