Depreciation of Like-Kind Exchange Property After Notice 2000-4 Tax Advisor (06/01) Vol. 32, No. 6 p.398; Mason, J. David; Levy, Linda Garrett; Levy, Richard L.
It seems like Notice 2000-4 will benefit taxpayers, but the
rule may actually prove burdensome for inadequately planned and executed
like-kind exchanges. Notice 2000-4 is viewed as taxpayer-friendly
because it allows accelerated depreciation deductions on exchanges
entered into after the notice's effective date, through the use of a
shorter life. Taxpayers can also apply the notice to like-kind
exchanges entered into prior to the effective date. In order to
maximize the benefits and avoid many tax traps, careful planning when
effecting a like-kind exchange is recommended.