Increasing Awareness and Understanding About Cell Tower Lease Buyout and Tax Strategies
When it comes to determining the amount you need to pay for your taxes, it really depend on how you would structure your cell tower lease buyout. In a cell tower lease buyout, it is either you grant the buyer a Lease Assignment or an Easement. It is important to ask a tax advisor to see the best deal structure that is best for you since a Lease Assignment is usually taxed as a pre-paid rent or ordinary income, whereas an Easement allow your cell tower lease buyout transaction to qualify for a capital gains tax treatment.
Of course, Uncle Sam always wants his share but you can also defer your taxes if you sell a property, and invest the proceeds in a new property, allowing you to defer all capital gain taxes under the 1031 exchange. The time frame that an investment for 1031 exchange must be identified within 45 days and a maximum of 180 days. You can contact a cell tower expert like David Espinosa, to help you more about 1031 exchange for your cell tower lease. Is it possible to split the sales proceeds into multiple tax years? Yes, it is possible. You can benefit from this tax strategy by dividing the cell tower lease buyout payment into two, one paid at closing of the current year and the other on the next year paid on January 1st. You can structure the payout to be paid over many years by accepting a multi-year payout wherein the buyer conducts a business for the time period and will fulfill his obligations to pay you for the coming years. There are really many options available for you in a cell tower lease buyout and contacting a cell tower consultant can be beneficial to help you in finding what you really need. A 1031 exchange is a popular option for many sellers under the Section 1031 of the US Internal revenue Code, so yours must be structured properly in order to qualify for it.
Take not that installment cell tower lease buyouts come with risks such as a tenant terminating the lease and stopping rent payments during the installment payment period that will also terminate the payments, and if the buyer goes out of business while the installment payment is ongoing. Your cell tower lease is worth more than you think, though you may get unsolicited offers from certain companies such as Unison, AP Wireless, and Wireless Capital Partners, their offers don’t really reflect the true valuation of your lease. David Espinosa can always help you in ensuring that you are fully informed of your cell tower lease buyout transaction, you can visit his website or homepage now. Be an informed seller, and get the money you truly deserve!