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. 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.
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. 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? Absolutely! 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. 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 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 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.
If you are planning to conduct an installment buyout for your cell tower lease, remember that there are risks associated with it including a tenant going out of business or a tenant terminating the lease and rent payments. You may get unsolicited offers from companies but their offers do not really reflect the true valuation of your cell tower lease, so it is important to talk with a cell tower consultant because you might be selling your cell tower lease at a really cheap price. 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!