When it comes to identifying the amount you have to pay for your taxes, it is essential to choose your preferred structure before starting the sales process. 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.
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 seller needs to select the investment property within a period of forty-five days of the exchange with a maximum time limit of one hundred-eighty 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. Can you split the proceeds of the cell tower lease sale into multiple tax years? Yes, it 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. When planning to structure payments over many years, it is important to make sure that your prospective buyer would have the capability to pay his financial obligations to you by ensuring he will be conducting business for the next 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. 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. You deserve more than what you think, talk to us now!