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. In a cell tower lease buyout, it is either you grant the buyer a Lease Assignment or an Easement. 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 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 a seller split the proceeds of the sales into multiple tax years? Yes, that is possible. 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. 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. If your cell tower lease buyout is structured properly then it may qualify for a 1031 exchange.
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. 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. 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 a smart seller, and gain the right amount for your cell tower lease, contact David Espinosa now!