A Simple Plan For Investigating Towers
David Espinosa: Cell Tower Lease Buyout 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. The two main structures being used in cell tower lease buyout are granting your buyer an Easement, or granting your buyer a Lease Assignment. A Lease Assignment can be taxed like an ordinary income or pre-paid rent, whereas an Easement may qualify your cell tower lease buyout transaction for a capital gains tax treatment.
Under the 1031 exchange, you can differ your taxes by selling a property, and reinvest the proceeds in a new property. The time frame that an investment for 1031 exchange must be identified within 45 days and a maximum of 180 days. Consult a cell tower consultant to help you know more about the 1031 exchange. Can a seller split the proceeds of the sales into multiple tax years? Absolutely! The lump-sum cell tower lease buyout payment can be split into two payments, wherein one payment is paid at closing in the current tax year, and the other payment paid on January 1st of the next year, which is a common tax strategy used by sellers. 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 cell tower lease buyout transactions can qualify for a 1031 exchange under the US Internal Revenue Code Section 1031, to defer tax capital gains.
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. Allow David Espinosa to give you a sound advice when it comes to your cell tower lease buyout transaction, feel free to check his website or homepage now. Be an informed seller, and get the money you truly deserve!