Alternatives

Alternative Investments

There are many Alternative Investment products available through our firm for diversification that are not available to the general investing public. Available for direct investment, these offerings are appealing to accredited investors seeking to even further diversify their financial portfolios.

When it is time to sell an investment property (met expectations, fully depreciated, tired of active management), there are many factors to consider. Whether investors are seeking to maximize gains, looking to increase the current level of income, or seeking to dispose of an underperforming asset, simply liquidating a property can create a number of taxable or recapture liabilities and obligations.  Investors are taking the first step in maximizing investment results by executing a 1031 Exchange. In some of the highest tax brackets, simply “cashing out” can erode up to 40% of the gains on profitable, low basis assets on a combined state and federal level. With guidance from the Internal Revenue Service, investment sponsors construct securitized real property investments for use as suitable replacement property in a 1031 Exchange. By reinvesting sale proceeds into a securitized fractional real property program, investors may:

• Defer Tax Liabilities Indefinitely
• Keep Investment Dollars Fully Invested
• In Many Cases Improve Upon The Grade And Quality Of Holdings

A conservation easement is a restrictive covenant that is a voluntary agreement that allows a landowner to limit the type or amount of development or conserve and protect natural resources on their property while retaining private ownership of the land. The conservation easement is signed by the landowner (the easement donor) and the Land Trust or Conservancy (party receiving the easement). The Land Trust or Conservancy accepts the easement with the understanding that it must enforce the terms of the easement in perpetuity. The easement is recorded with the County and runs with the land and binds all future owners of the land.

There are tax benefits to developing an oil or gas well. Intangible drilling costs (IDCs) include all expenses made by an operator incidental to and necessary in the drilling and preparation of wells for the production of oil and gas, such as survey work, ground clearing, drainage, wages, fuel, repairs, supplies and so on. Broadly speaking, expenditures are classified as IDCs if they have no salvage value. IDCs include all real and actual expenses except for the drilling equipment.

Those of us who own businesses, corporations, and commercial or residential investment real estate assets are often reluctant to sell because of capital gains taxes associated with the sale. But what other choice do we have other than a property exchange directed by a Qualified Intermediary? Is there another way to deal with the capital gains tax deficits that so many investors experience when they sell their real estate assets? The answer may lie in the Deferred Sales Trust™.

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