---
title: Like-Kind Exchange | Southern Fabricating Machinery Sales
description: Discover the benefits of Like-Kind Exchanges and how to use them by downloading SFMS’s free guide!
---

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## A Proven Tax Strategy Designed for Businesses Wanting to Upgrade Equipment

![like-kind-exchange](https://www.southernfabsales.com/hs-fs/hubfs/images/covers/like-kind-exchange.png?width=250&name=like-kind-exchange.png "like-kind-exchange")Using a Like-Kind Exchange (LKE) is a great way for a business to replace its obsolete equipment, defer tax liabilities, and improve cash flow all at once. These exchanges leverage an IRS rule—IRS Section 1031(a)—that states there is no taxable gain recognized when property is exchanged solely for property of “like kind.”

To help you navigate using LKEs and get to know the benefits of these transactions, the SFMS team has put together a quick guide to Like-Kind Exchanges where you’ll find:

- An outline of LKEs;
- An example of how a real-world company used an LKE to reduce their taxes and monthly payments on a new machine; and
- Some benefits of using an LKE.

Download the guide for free right now by filling out the form on this page!

### Download Like-Kind Exchange Guide:

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