Learn More About Selling Cell Tower Lease Tax Strategies
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. 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. 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? Yes, that 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. Indeed, there are many options for a cell tower lease buyout for sellers, so it is essential to seek the help of a cell tower consultant like David Espinosa to get a tailored transaction to meet your needs. 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.
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!