David Espinosa: Cell Tower Lease Buyout Tax Strategies
Restructuring your cell tower lease buyout would determine how much taxes you are going to pay. 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.
It is possible to defer all capital gain taxes for your cell tower lease buyout under the 1032 exchange, wherein an investor can sell a property and reinvest the proceeds in a new property to differ taxes. The time frame that an investment for 1031 exchange must be identified within 45 days and a maximum of 180 days. If you want to find out more about 1031 exchange for your cell tower lease, you can always talk to a cell tower consultant like David Espinosa. Is it possible to split the sales proceeds into multiple tax years? Yes, that is possible. This is a common tax strategy that is utilized by sellers most especially towards the end f the year, splitting the lump-sum cell tower lease buyout into two payments. It is also possible to have a payment structured to be paid over many years but proceed with caution and ensure that the buyer will be conducting business to fulfill his financial obligations in the years to come. Indeed, there are a lot of options for sellers in a cell tower lease buyout, but it is important to be well informed by consulting a cell tower consultant like David Espinosa to tailor your transactions in meeting your needs. 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.
While there are benefits with instalment payouts most especially when it comes to taxes, there are associated risks including a tenant terminating the lease and rent payments, or a tenant going out of business. There are also times that you will be receiving calls from companies like Unison, AP Wireless, and Wireless Capital Partners offering to purchase your cell tower lease, but remember that their offers don’t reflect the true valuation of your lease. If you are looking for a trusted, reputable, and reliable cell tower lease consultant, David Espinosa is willing to help you, find out more by visiting his homepage or website now! Be an informed seller, and get the money you truly deserve!