Guides on how to perform 1031 exchanges with specific types of property or business. Check our 1031 Guide today.

1031 Exchange Conservation Easements

In the United States, conservation easements allow private investors and entities to take control of a parcel of land. From here, they can maintain or improve the land. Across the country, conservation easements set up and purchase is available. Usually by sustainability-conscious investors to improve water quality. Moreover to perpetuate the growth of forests, protect wildlife habitats, and more. This is where 1031 Exchange Conservation Easements comes in.

Owning conservation easements is a bit different in each state. There are significant tax deductions and exclusions in different parts of the country. This leads to many investors purchasing conservation easements as a tax shelter. In many cases, these tax shelters have proof to be less legitimate. The buyer does not put forth efforts toward the conservation of the land.

Selling to a government body, enterprise, or private investor typically involves a large cash influx. With this, the loss of tax reductions is dealable with significant taxation on the price of the sale. One of the best ways to recoup losses from the sale of conservation easements is to utilize a 1031 exchange. Mainly to trade the property for another asset.

In this article, we will outline how to sell a conservation easement in a 1031 exchange. In doing so, taxpayers can defer capital gains taxes. This is by reinvesting in a new property such as mineral rights and royalties.

How to Sell Your Conservation Easements

This great effort to protect our country’s land is at an all-time high. It has never been easier for private and public buyers to find and purchase conservation easements. In many cases, individual purchases are available with the assistance of at least some local, state, or federal funding. You have to know about the Programs from Partners for a Clean Environment (PACE). Also, the other organizations can drastically bring the appraised value of conservation easements down. This is so that buyers can afford designated land.

Determining the Value of Your Conservation Easements

Conservation easements are typically reviewed by qualified appraisers in order to determine their market value. While some investors choose to donate their conservation easements for the tax benefits, a highly valued conservation easement can end in a large check written in the former landowners’ name. Appraisers typically look at the following factors in order to determine the market value of a conservation easement:

  • Property size (acreage)
  • Property features (water, forest, etc.)
  • Property history (new or established easement)
  • And more

In some cases, conservation easements may actually lower a property’s value. This is the primary reason why investors typically donate their conservation easements to farmers or landowners that can further financially benefit from the land.

Taxes Paid on the Selling Conservation Easements

If you choose to sell, rather than donate or bequeath your conservation easements, then you will be forced to pay a few different taxes based on your location. In regions across the United States, taxpayers may expect the following to be applied to the sale of conservation easements:

  • Capital Gains Taxes
  • Federal Income Taxes
  • Sales Taxes
  • Local Taxes
  • And More

Of course, experienced investors are well aware that the IRS offers a 1031 exchange to help taxpayers retain their wealth by deferring capital gains taxes. As capital gains taxes can reach rates as high as 20% on the sale of a conservation easement, purchasing a new property with a 1031 exchange is one of the most popular ways to maximize the earnings from an outright sale.

Selling Conservation Easements with a 1031 Exchange

With a 1031 exchange, capital gains taxes can be completely avoided. This is if sellers choose to reinvest in a property that is of equal or greater value than the conservation easement. If the new property is of less value than your conservation easements, some capital gains taxes can be deferred.

As in most government procedures, 1031 exchanges used in the sale of conservation easements can be highly complicated endeavors with detailed paperwork and strict deadlines to meet. For this reason, most busy investors choose to work with a 1031 exchange intermediary when selling a conservation easement.

Conservation Easements Like-Kind Properties

The primary function of a 1031 exchange is to “trade” a conservation easement or other personal property for a new asset. The IRS designates that both properties in a 1031 exchange should be of “like-kind,” although the definition of this is somewhat loose. In most cases, investors and their accounting teams are able to justify most personal property types as like-kind to conservation easements. Today, these include:

  • Farmland
  • Vacant lots
  • Commercial buildings
  • Collectibles
  • Water and ditch rights
  • Mineral rights and royalties
  • And much more

Conservation Easements 1031 Exchange Timeline

As soon as you sell your conservation easement, your eligibility for a 1031 exchange begins. Within the first 45 days, all taxpayers using a 1031 exchange must identify at least one “reasonable” property that they may purchase to avoid capital gains taxes. This property does not necessarily have to be the one that is actually used in the exchange and investors have precisely 180 days (or about 6 months) to finalize the acquisition of the new asset.

Why Purchase Mineral Rights and Royalties?

To some environmentalists, mineral rights may seem like the opposite of conservation easements when looking at the individual assets in a portfolio. Most mineral rights are useable to source and sell natural resources. They are also purchasable without the intent of extracting the land’s energy-producing substances. In this regard, mineral rights can actually be a logical purchase for those selling conservation easements.

On the other hand, today’s technology has made it easier and safer than ever for oil and gas companies to mine and sell the resources found below the earth’s surface. With a strong mineral rights lease, subsurface property owners can generate a consistent income stream as a fixed percentage of monthly oil and gas operation sales.

Conclusion About 1031 Exchange Conservation Easements

In conclusion, if you plan to sell your conservation easements, the best way to retain most of your capital is through a 1031 exchange. With a specialized 1031 exchange intermediary, investors in the United States may be able to transform their conservation easements into a strong and profitable mineral rights portfolio.

If you have further questions about 1031 Exchange Conservation Easements, feel free to reach out to us here.

1031 Exchange Leasing Portfolios

Are you fortunate enough to have a leasing portfolio? If yes then it is most likely difficult to imagine getting rid of all of your assets. Most people associate leasing with land and buildings. Some high-ticket leasing portfolios with cars, trucks, and equipment for people. There are also professionals in all industries who can be highly cash flow-positive endeavors. In this article, we will talk more about 1031 Exchange Leasing Portfolios.

Is it time to sell your cars, trucks, or equipment? If yes, then huge portfolio adjustments from high volume sales often result in capital gains taxes. It is applicable to asset sales. If your portfolio sale is large enough to warrant capital gains taxes, then a 1031 exchange is possible to alleviate expenses when reinvesting in new properties.

In this article, we will outline the steps to take when selling a portfolio and leveraging a 1031 exchange with the IRS. With this, we hope to bring a greater understanding of the benefits of using a 1031 exchange when selling a leasing portfolio, while outlining mineral rights and royalties as one of the best possible investments for your capital gains.

How to Sell Your Leasing Portfolio

Depending on its contents, there are many different ways to approach the sale of a complete leasing portfolio. In modern American industry, the following items are most commonly visible in both personal and business leasing portfolios:

  • Cars
  • Trucks
  • Aircrafts
  • Boats and watercrafts
  • Power generators
  • Real Estate
  • Communication equipment
  • Manufacturing equipment
  • And much more

In the growing peer-to-peer economies of today’s marketplace, leasing has become more common than owning for many income and social groups. Chances are today, if you can buy it, then you can lease it. However, leasing is one of the quickest ways to place wear and tear on portfolio assets with the risk of your property losing its value.

When the time comes to sell, large leasing portfolios are often sellable with the help of a professional facilitator. It leverages connections and networks to find the right buyer. Individual components are sellable one by one. The full outright sale of a complete leasing portfolio with the help of a broker is the easiest way to transform your wealth into a new direction.

Determining the Value of Your Leasing Portfolios

To sell your leasing portfolio, you must essentially just sum up the assets which you are hoping to sell. Bundling works both for and against investors as a large quantity deal typically results in a high sale price, but a lower overall per-unit commission. Of course, the true value of a leasing portfolio is only determined by how much a person or business is willing to pay for the assets.

Leasing portfolios are valued by the following attributes:

  • Number of assets
  • Outstanding contracts
  • Maintenance history
  • Location of assets and transportation concerns
  • The expected lifetime of assets and leasing potential
  • And more.

Active leasing portfolios with up-to-date contract and maintenance records are the most likely to sell to new investors. More often than not, the amount of capital you will receive for your leasing portfolio is largely determined by when the new investor expects to recoup their purchase through asset leases.

Taxes Paid on the Selling Leasing Portfolios

While leasing has taxes of its own, when you decide it’s time to sell, large amounts of tax are generally paid on the sale of a leasing portfolio. For both private and public leasing companies, the following taxes can be expected:

  • Sales Taxes
  • Federal Income Taxes
  • Capital Gains Taxes
  • Local Taxes
  • And More

On top of these expenses, large leasing portfolios are commonly sold across international borders. With this, investors can be expected to pay regulatory and local taxes that vary between countries. For sales that remain in the United States, a 1031 exchange can be used to defer capital gains taxes.

Selling Leasing Portfolios with a 1031 Exchange

Experienced investors are usually well aware that 1031 exchanges can be used to defer taxes on the sale of a large asset, so long as the taxpayer reinvests in another property. With this, the “exchange” or “trade” can be completed without having to shell up a few bucks for Uncle Sam. If the new asset is valued less than the sale price of a leasing portfolio, it is possible to defer only some of the capital gains tax. However, most investors use 1031 exchanges as an opportunity to “trade up” for something more valuable.

Leasing Portfolios Like-Kind Properties

In a 1031 exchange, leasing portfolios can be traded for “like-kind” properties. Leasing portfolios are viewed as ordinary private property assets, and can therefore be exchanged for many high-ticket properties. This includes:

  • Land
  • Farms
  • Apartment buildings
  • Retail stores
  • Water and ditch rights
  • Mineral rights and royalties
  • And much more

Leasing Portfolios 1031 Exchange Timeline

After you sell your leasing portfolio, then you have exactly 180 days to replace your asset with a new property in a valid 1031 exchange. Within these 6 months, at least one property is identifiable in the first 45 days. Moreover, you can submit 3 total propertis for consideration to the IRS without having to incorporate their value.

Why Purchase Mineral Rights and Royalties?

While you can purchase almost anything after selling your leasing portfolio, we strongly recommend looking into the possibility of mineral rights and royalties. Here in the United States, mineral rights are purchasable and leasable to oil and gas companies. These are companies that extract and sell natural resources on the open market. As the mineral rights owner will receive a steady stream of mineral royalties.

Clearly, mineral rights are not that much different than leasing portfolios with cars, trucks, or equipment. Here, mineral rights are also leaseable. However, day-to-day operation is typically much less hands-on for mineral rights owners than in traditional leasing portfolios.

Conclusion on 1031 Exchange Leasing Portfolios

In conclusion, the sale of a leasing portfolio is maximizable by reinvesting the capital with a 1031 exchange. For a similar experience with a passive income stream, former leasing portfolio owners should explore the possibility of mineral rights as a great long-term investment.

If you have further questions about 1031 Exchange Leasing Portfolios, feel free to reach out to us here. 

1031 Exchange Livestock

For cowboys and ranchers, owning livestock is as necessary as food, water, and shelter. It is really tiring to herd your livestock until the cows come home. There could come a time to thin or completely rid the entire herd.
No worries if you’ll no longer be reaping the benefits of your animals (i.e. milk, cheese, wool, etc.). The sale of livestock indeed comes with a large cash influx. With this in mind, investors are well aware that capital gains taxes are applicable to high-ticket private asset sales.

Here, a 1031 exchange is useable to essentially “trade” your livestock for a new piece of property. In doing so, the sale is maximizable as capital gains taxes are completely or partially deferrable.

Below, we will detail the steps a taxpayer must take to sell livestock and complete a successful 1031 exchange. With this, we will illustrate why mineral rights are one of the best ways to reinvest your capital with future mineral royalty payments.

How to Sell Your Livestock

Officially, a 1031 exchange begins at the sale of the property asset. Therefore, you must first sell your livestock to initiate the exchange. Many people have the experience in selling occasional “raising to sell” animals to down-market vendors, the overhaul of a large flock can necessitate capital gains taxes to be applicable.

In selling livestock, it is critical that you be honey in describing your herd to the best of your abilities. This includes accurate ages and quantities for all animals as well as any associated legal tags or history.

Determining the Value of Your Livestock

In truth, most livestock is sold at auction. Therefore, the true value of your livestock is only going to be represented by the highest bidder. However, private sales are not unheard of, and livestock is also often bundled into large deals involving farmland or estates. With all of this said, when presenting your livestock to buyers you may need to have an initial bid price, and it is generally good to know the approximate value of your asset before agreeing to proposed terms.

Livestock is valued by the following criteria:

  • Types of livestock (cows, bulls, goats, sheep, etc.)
  • Quantity
  • Age of livestock
  • History and projected income streams
  • The distance of sale (travel expenses)
  • And more

Livestock sales are common to both individuals and businesses. While contracts are only necessary for possible misconceptions in B2B sales, sales to private entities will likely take longer with thorough background checks on livestock conditions and rights of sale.

Taxes Paid on the Selling Livestock

As we mentioned above, large livestock sales often come with heavy taxations. In fact, livestock sales can be expected to retain only 55% to 75%of their total price tag after legal fees and taxes are applied by local and national governments. Depending on your location, the following taxes may be paid on livestock sales:

  • Federal Income Taxes
  • Capital Gains Taxes
  • Sales Taxes
  • Local Taxes
  • And More

Of course, if your sale is large enough to warrant a capital gains tax, the balance can be deferred by using a 1031 exchange.

Selling Livestock with a 1031 Exchange

With a 1031 exchange, taxpayers can eliminate 100% of capital gains taxes that would be applied if they choose to invest in a new property of equal or greater value. While it is true that you can partially defer the taxes with a lower value asset, many investors use a 1031 exchange as an opportunity to “trade-up” for a higher valued property.

Livestock Like-Kind Properties

Under the IRS code, livestock must be exchanged for “like-kind” property in order for capital gains taxes to be eliminated. Essentially, what this means is that taxpayers must invest in another private property asset. With this in mind, the definition of “like-kind” property is actually quite loose.

Historically, the following can be considered “like-kind” properties of livestock:

  • Farms
  • Timberland
  • Water and Ditch Rights
  • Mineral Rights and Royalties
  • And more

Livestock 1031 Exchange Timeline

A 1031 exchange officially begins at the time of sale, and taxpayers have officially 180 days to purchase a new like-kind property. During this six-month window, investors must officially identify at least one “reasonable” property within 45 days of the sale of livestock for a 1031 exchange to remain valid.

1031 Exchange Intermediaries for Selling A Livestock

With tight deadlines and detailed paperwork, many busy investors find it necessary to use a 1031 exchange intermediary to successfully eliminate capital gains taxes. While this can open up time for taxpayers to identify new properties, it is also possible to work with an industry specialist that can help identify the best potential property investments in their area of expertise.

Why Purchase Mineral Rights and Royalties?

In the United States, residents have the unique ability to purchase mineral rights of a property, which entitles the owner to everything below the earth’s surface. While this is not available in every country throughout the world, mineral rights have been allowing investors to profit from the natural resources found on and under American soil for over 100 years.

Today, mineral rights owners generally lease their property to an oil and gas company. From there, the company locates, extracts, and sells the resources on the open market. As the mineral rights owner, you will then receive a mineral rights royalty payment as a fixed percentage of the monthly sales.

Conclusion

When the cows don’t me home and you have a large cash sale instead, it is important to consider using a 1031 exchange to maximize the sale. Livestock generally requires extensive maintenance and upkeep. On the other hand, mineral rights is generally a passive way to reinvest capital. This is to have a positive diversification of any investment portfolio.

If you have further questions about 1031 Exchange Livestock, feel free to reach out to us here.

Precious metals are, well, precious. Gold, silver, and even historic coins are some of the oldest representations of wealth. They currently hold value in the world today. Gold, silver, and coins come in all shapes and sizes. Extensive collections or large individual pieces can warrant huge cash sales to the right buyer.

Knowing this, investors with large reserves of precious metals will likely encounter a huge capital gain. This is once you are able to sell the collection. Although this is certainly exciting, it often becomes a little less. This is when capital gains taxes are payable on the sale of gold, silver, or numismatic coins.

Thankfully, modern IRS codes allow for large private property sales to defer capital gains tax with a 1031 exchange. In a 1031 exchange, a new property is purchasable with the proceeds of the sale. This is so that investors essentially “trade” their assets, rather than pay capital gains taxes.

In this quick guide, we will outline the steps to 1031 exchange gold, silver, or numismatic coins. With this, the reinvent potential is limitless. We will showcase mineral rights and royalties as one of the best possible private property purchases.

How to Sell Your Gold, Silver, or Numismatic Coins

Thanks to its value and history! There is essentially an unlimited number of ways to sell precious metals in today’s open market. From online sales to the pawnshop down the street, nearly everyone knows that gold, silver, and coins can be a strong investment that will hold its value for potential resellers.

With this, legitimate you must complete the sale with proper paperwork if you are hoping to utilize a 1031 exchange. While this is somewhat obvious, it is important to remember that legal sales to legitimate sellers are going to be the best way to maximize the sale of gold, silver, or numismatic coins.

Determining the Value of Your Gold, Silver, or Numismatic Coins

Everyone knows gold, silver, and coins are valuable, but how valuable? Numismatic values of coins are generally far and beyond their original face value. That’s why first-time sellers may have a difficult time determining the approximate value of new metal products.

Gold, silver, and numismatic coins are generally valued by the following considerations:

  • Type of metal and its current market value
  • Percentage of precious metal within assets
  • Size, quantity, and weight of the collection
  • Current asset conditions
  • Number of previous owners
  • And more

While most gold, silver, and numismatic coin sales are to private investors and entities, precious metal sales also have the opportunity for a few unique market positions. Beyond individuals, companies, governments, and even museums may be interested in acquiring gold, silver, or numismatic coins.

Taxes Paid on the Selling Gold, Silver, and Numismatic Coins

In legitimate sales, the IRS classifies gold, silver, or numismatic coins to be “collectibles.” With this in mind, considerable taxes are paid whenever precious metals are sold. Although the rates are variable depending on your location, the following may be paid on the sale of gold, silver, or numismatic coins:

  • Capital Gains Taxes
  • Sales Taxes
  • Local Taxes
  • Federal Income Taxes
  • And More

When considering a collectible, taxpayers do not get the benefit of long-term capital gains tax rates. Instead, the sale of gold, silver, or numismatic coins is likely to coincide with a capital gains tax rate of up to 28% of the total bill of sale. Knowing this, the difference of capital gains taxes with a 1031 exchange is becoming increasingly common among both new and experienced investors.

1031 Exchange Gold, Silver & Numismatic Coins

1031 exchange gold, silver, or numismatic coins can be used to avoid every penny of capital gains tax if taxpayers choose to invest the sale into a new asset of equal or greater value. While partial fees can be deferred with a property of lesser value, this is less common than investments that allow taxpayers to stretch their capital as much as possible.

Gold, Silver & Numismatic Coins Like-Kind Properties

The sale of gold, silver, or numismatic coins presents the opportunity to reinvest in a large number of different personal properties with a 1031 exchange. While the true definition of “like-kind” properties is quite loose, the IRS allows the following to be exchanged for gold, silver, and numismatic coins:

  • Mineral rights and royalties
  • Cars and other collectibles
  • Homes and apartments
  • Office buildings
  • Convenience stores
  • Trailer parks
  • And more

Timeline to 1031 Exchange Gold, Silver & Numismatic Coins

After the asset is sold, taxpayers have exactly 180 days to replace gold, silver, or numismatic coins in a legal 1031 exchange. While this offers a grace period of essentially six months, at least one new property must be identified within 45 days of the sale.

Here, deadlines must be met alongside the necessary paperwork to legitimize a 1031 exchange. With this, many investors choose to work with a 1031 exchange intermediary to ensure the entire process is as smooth as possible. Beyond this, industry-specific experts are also available to assist in property identification to maximize your investment.

For additional requirements, please see our 1031 Exchange Rules and Requirements Page.

What to 1031 Exchange Gold, Silver & Numismatic Coins For

While private property owners can choose to invest in virtually anything with a 1031 exchange, mineral rights present a unique opportunity for taxpayers within the United States. With mineral rights, also known as subsurface rights, the property is leasable to oil and gas companies to explore, extract, and sell natural resources such as oil, gas, coal, or more. In doing so, mineral rights owners can receive monthly mineral royalty payments in compensation for their participation.

Conclusion

In conclusion, 1031 exchanges are one of the best ways to maximize the sale of gold, silver, or numismatic coins. With each dollar of capital gains taxes saved, reinvestment can go further into a new private property. Today, few investments are available that are quite like mineral rights, which can serve to become a profitable income stream or high-value resell in a world of growing energy demand.

Not everyone has the privilege of their own private aircraft so for sure 1031 exchange aircraft is not on everyone’s knowledge. Whether it be a propeller plane, private jet, or fleet of helicopters, aircraft possession is usually only under reservation. Usually for the immensely wealthy or a handful of diehard aviation enthusiasts.

With that in mind, when it comes time to sell an aircraft, a lot of capital is going to be around. No matter the age or operating function, planes and helicopters are generally at high ticket selling prices to wealthy bidders.

Here, experienced investors know of a little trick called a 1031 exchange. In this IRS-designated procedure, a taxpayer can evade capital gains taxes on the sale of a large asset by reinvesting the capital in another purchase. In doing so, 1031 exchanges can be useable to “trade” aircraft for other private properties.

Moreover, in this article, we will outline the steps it takes to 1031 exchange aircraft. In doing so, we will illustrate mineral rights and royalties as a great property option for investors looking to maximize the sale of an aircraft.

How to Sell an Aircraft

Even in the third decade of the 21st century, we still seem far away from the cartoon future of flying cars everywhere, owned by everyone, like in The Jetsons. With a limited market, this proves to make private aircrafts somewhat difficult to sell. Here, we recommend working with a broker to help facilitate the sale. Once the deed is complete, any registration or FCC licenses in the previous owner’s name must be removed.

Determining the Value of Your Aircraft

Most private aircraft actually retain their value quite well. So long as it was always in good operating condition and was purchased from a reputable seller, the price you paid for your aircraft may actually be quite similar to the price that you sell your aircraft years later. FOr this reason, jets, planes, and helicopters are popular business assets for reserving large amounts of money within the organization’s portfolio.

The value of an aircraft is determined by the following attributes:

  • Type of aircraft
  • Make and Model
  • Size
  • Age
  • Condition
  • Fuel efficiency
  • Added or removed features
  • Branded or not branded exterior
  • Navigation features
  • And more

Of course, the true value of any aircraft is only the amount that someone is willing to pay for it. While you may own your aircraft privately or as a part of a company’s asset portfolio, an aircraft can then be sold to individuals or businesses large and small. With that said, planes and helicopters with significant mileage are usually deemed unfit for commercial use by many private businesses and government regulations.

Taxes Paid on the Selling Aircraft

As we mentioned earlier, planes, helicopters, and jets sell for an awful lot of money. Whether it be a one or two comma deal, former aircraft owners can expect a bulge influx in cash if the time comes when they decide to sell. Unfortunately, with every dollar earned, another portion of that dollar may be taxed by local, state, and federal governments.

When selling an aircraft, you can expect to pay:

  • Personal Property Tax and Registration Fees
  • Depreciation
  • Passive Activity Losses
  • Federal Income Taxes
  • Capital Gains Taxes
  • Sales Taxes
  • Local Taxes
  • And More

When all is said and done, aircraft sales can come with nearly 40% of the capital going to taxes. Naturally, one of the best and most common ways to reduce this amount from totaling beyond its worth is to 1031 exchange aircraft.

1031 Exchange Aircrafts

In a 1031 exchange, aircrafts sold and replaced with an asset of equal or greater value will result in the complete deterrence of capital gains taxes that would have been otherwise paid. Whereas it is possible to only partially eliminate some of the capital gains taxes paid on the sale of an aircraft, most investors choose to “trade up” for another aspect that is either functional or financially favorable.

Aircraft Like-Kind Properties

In order for a 1031 aircraft exchange to be valid, an aircraft must be replaced with a “like-kind” property. The IRS is pretty open to what can be considered similar, largely viewing most property assets as in the same vein. With that being said, helicopters, planes, and jets can be used in a 1031 exchange to purchase:

  • Homes
  • Apartments
  • Convenience Stores
  • Farms
  • Water and Ditch RIghts
  • Mineral Rights and Royalties
  • And more

1031 Exchange Aircraft – Timeline

Although it may take some time to find the right buyer, as soon as the sale of an aircraft is officially complete, then the taxpayer’s eligibility for a 1031 aircraft exchange begins immediately. From here, at least one potential property must be identified for purchase within 45 days. Following this, a new property must be purchased within 180 days (or roughly half of a year) in order to avoid paying capital gains taxes on the sale of their aircraft.

For additional requirements, please see our 1031 Exchange Rules and Requirements Page.

Using an Intermediary to 1031 Exchange Aircraft

Obviously, deadlines must be met and paperwork must be filed to complete a successful 1031 aircraft exchange. While both time-consuming and laborious with extreme attention to detail required, it is recommended that investors work with a 1031 exchange intermediary to maximize the sale of an aircraft.

What to 1031 Exchange Aircraft For

In the United States of America, private landowners can buy and sell their properties subsurface in the form of mineral rights. With mineral rights, the land can then be under leasing to oil and gas companies. They are companies looking to find, extract, and sell the natural resource found beneath the earth’s surface. Once it’s sold, mineral rights owners will then receive mineral royalty payments as a fixed percentage of the operation’s income.

Conclusion

When it comes time to 1031 exchange aircraft, purchasing mineral rights is one of the best portfolio adjustments. That is exclusive to a few select countries. In doing so, mineral rights can generate highly profitable streams of income. That is through monthly royalty payments or another large lump sum in a future sale.

If you have further inquiries on 1031 exchange aircraft, feel free to reach out to us here.

Communication towers have been a part of our society for over a century. They’ve changed shape, size, and function over the years. From radio to television to internet and phone networks, communication towers are a strong asset in the information age. Let’s talk more about 1031 Exchange Communication Towers below.

For the most part, communication towers are generally leaseable to companies. These are companies that provide network services or individual portrayers of radio or other media. Leasing is a great option to maintain ownership of your tower. Oftentimes, companies wanting to secure their assets will buy communication towers for large amounts of money.

Unfortunately, a huge amount of cash usually comes to a large portion of the sale. Most are payable to taxes.

Thankfully, capital gains taxes from the sale of a communication tower are avoidable. A 1031 exchange is useable to purchase a new like-kind asset.

In this article, we will break down the steps in selling a communication tower and transferring the capital to a new asset with a 1031 exchange. Today, few portfolio assets are stronger than mineral rights, which we will showcase as a great option for reinvesting to both avoid capital gains taxes and secure a strong financial future.

How to Sell a Communication Tower

First things first, to use a 1031 exchange you must sell your communication tower. Unfortunately, communication towers are not as easy to sell as secondhand clothes or records. Rather there is a limitation on the pool of potential investors for personal use. With that, communication towers are highly desirable assets, so beware of lowballing deals for opportunists looking to leverage their networks for a quick resell.

Thankfully, there are a few local, regional, and national broker organizations that specifically work with communication towers. If you’re looking for a fast, efficient, and fair sale without putting in much time or effort, we recommend working with capital advisors who have experience with communication tower sales.

Determining the Value of Your Communication Towers

Now before you hand your tower over to another investor or company, it is important to have a rough understanding of its value. While you may have been leasing the communication systems to a company, the outright sale of a tower can be well beyond 15 times that of the monthly rent. While every sale is different, the value of most communication towers is assessed on a few key attributes. These include:

  • Location
  • Accessibility
  • Layout and design of the site
  • Type of tower, materials, and supports
  • Equipment technology (owned vs leased)
  • Lighting, buildings, and other onsite features
  • And more

Communication towers are now in demand more than ever before. Whereas many speculate that towers will ultimately be replaced by satellites, there is still a large and growing demand for cellular towers all across the globe.

Taxes Paid on the Selling Communication Towers

As we mentioned earlier, big sales generally come with large taxations. Communication towers are no different, as huge sales to brokers and large corporations warrant deals susceptible to significant amounts of capital being taxed at the time of the deal. Depending on the location, the following are generally taken from the outright sale of a communication tower.

  • Sales Taxes
  • Federal Income Taxes
  • Capital Gains Taxes
  • Local Taxes
  • And More

With all of this added up, taxpayers can expect to lose over 30% of their communication tower sales to local and federal governments. Of course, some of this can be deferred, as capital gains taxes can be avoided with a 1031 exchange.

Selling Communication Towers with a 1031 Exchange

A 1031 exchange (also known as a section 1031 exchange) is an IRS procedure that allows for the total elimination of capital gains taxes on the sale of a communication tower. In order to be completed, the same taxpayer must purchase a new property asset to replace the communication tower in a virtual “trade” or “exchange.” If the new property is of the same or greater value than the communication tower, then all of the capital gains taxes that would have otherwise been paid can be completely deferred.

Communication Towers Like-Kind Properties

The IRS has defined “like-kind” properties rather loosely so that investors can replace communication towers with many other forms of personal property. In fact, if you sell your cell tower, you can replace it without having to pay capital gains taxes for any of the following:

  • Mineral Rights and Royalties
  • Artwork
  • Collectibles
  • Farmland
  • Water and Ditch Rights
  • Apartment Buildings
  • And much more

Communication Towers 1031 Exchange Timeline

Once a communication tower is sellable, then taxpayers can begin to identify properties eligible for the 1031 exchange. In total, up to 3 portraits can be identified regardless of their value. First, one must be identified within 45 days of the sale. After that, the exchanger then has the rest of the 180 after-sale periods to successfully purchase one of the new properties.

1031 Exchange Intermediaries for Selling A Communication Tower

As with any governmental procedure, there is extreme attention to detail required to successfully complete a 1031 exchange. With the help of a specialized intermediary, taxpayers can avoid the hassle of tireless paperwork, property identification, and more. Meeting deadlines is essential here. Eligibility is completely resolvable after 6 months.

Why Purchase Mineral Rights?

Investors can reroute their money anywhere. The sale of a communication tower is expandable with a savvy reinvestment. Here in the United States, individuals have permission to own mineral rights. This is now leasable to oil and gas companies. With this, mineral royalty checks is a reward to mineral rights owners. It is a permanent percentage share of the monthly resource sales on the property.

Conclusion

Communication towers, primarily used for cell phone networks, are an important and necessary part of today’s society with significant red tape and barriers to entry. With that in mind, functional towers are sellable for enormous profit margins. In the United States, mineral rights are a sound reinvestment with a 1031 exchange for both deferring capital gains taxes and establishing a future income stream.

If you have further questions about 1031 Exchange Communication Towers, feel free to reach out to us here.

1031 exchange artwork

Have you heard of 1031 Exchange Artwork? Artwork and mineral rights do not have a lot in common. Whereas one hangs on a wall or appears in a gallery. The other is deep below the surface of the earth. Perhaps there is only one thing that artwork and mineral rights have in common. It is that both of these assets could be found in a well-balanced investment portfolio.

As energy becomes more important with each passing day, mineral rights continue to be one of the most valuable assets. Especially for American investors can hold. If the time has come to part ways with a piece of art, large sales can be maximized. This goes with a smart reinvestment.

In this article, we will break down the steps to take to 1031 exchange artwork. In doing so, we will showcase how like-kind properties such as mineral rights are the best way to maximize the sale of artwork.

How to Sell Your Artwork

Artwork has been one of the longest-standing types of assets throughout human history. Today, artists around the globe are selling their work in galleries, both online and in person. While there are a million different ways to network and sell pieces of your own artwork, this guide is intended to help investors who purchase and sell fine art for their homes, office space, and more.

You can 1031 exchange artwork only once the artwork is sold. If you are trying to sell a private collection of fine art, there are a few different methods you can choose from. Most commonly, investors choose to work with an art dealer. With mitigation and connections, a dealer may be able to accelerate the sale of your art at a similar or increased price for what you originally paid for it.

Determining the Value of Artwork

Artwork is tough to put a price on. In fact, it is safe to say that most people in the world have walked through a “fine art” gallery only to be left in shock to learn about the great expense of relatively simple-looking art pieces. With that being said, the fine art market continues to boom throughout the modern age and the price of a piece or portfolio is truly only equal to the price that someone is willing to pay for it.

Depending on the nature of the piece, any artwork is usually priced on:

  • The Size
  • The Materials
  • Framing vs. Unframing
  • Transportation Concerns
  • Artist Reputation
  • Quality
  • And more

Taxes Paid on the Selling Artwork

When selling artwork, the sky’s the limit. While starving artists may never get their reward, there are also many pieces around the world being exchanged for huge sums of money. While cash deals at artist’s markets may never see taxes being applied to the profits, there are considerable taxes paid on the sale of large private pieces and collections of art. Typically this includes:

  • Federal Income Taxes
  • Capital Gains Taxes
  • Sales Taxes
  • Local Taxes
  • And More

1031 Exchange Artwork

Depending on how long you held your artwork in your private gallery or collection, the sale may have short or long-term capital gains taxes applied. This could be anywhere from 0 to 20% of the piece’s final price, depending on how much the artwork is sold for.

With a 1031 exchange, artwork can be sold without having to pay any capital gains taxes. Here, the artwork must be “exchanged” for another asset within a fixed period of time. In doing so, reinvestments of funds qualify for complete or partial deferral of capital gains taxes.

Artwork Like-Kind Properties

The IRS qualifies pieces of fine art into the private property category. This means that artwork is no different than your house, your clothes, or your car and it can be bought and sold on the open market as a privately owned good.  In a 1031 exchange, artwork can be sold in exchange for:

  • Mineral Rights and Royalties
  • Homes and Apartments
  • Trailer Parks
  • Shopping Malls
  • And so much more.

1031 Artwork Exchange Timeline

With artwork sales, finding the right buyer is everything. Sometimes this is accomplished as soon as the piece premiers, whereas other times fine art can be held in a private gallery for many years before being purchased by an art collector. With this in mind, the clock begins ticking on 1031 artwork exchange eligibility as soon as a piece of artwork is sold.

Within 45 days of the sale of the artwork, one property must be identified for a like-kind 1031 exchange to be valid. Beyond this, taxpayers have exactly 180 days to purchase the new property for the elimination of capital gains taxes.

For additional requirements, please see our 1031 Exchange Rules and Requirements Page.

Using an Intermediary to 1031 Exchange Artwork

With the paperwork to file and deadlines to meet, we highly recommend working with a 1031 exchange intermediary when selling artwork and eliminating capital gains taxes. In doing so, taxpayers can focus more on their time identifying and evaluating potential assets.

What to 1031 Exchange Artwork For

More than anything, we strongly recommend that first-time sellers and experienced investors consider purchasing mineral rights in a 1031 artwork exchange. As the owner of a property’s subsurface, mineral rights holders can enter into mineral rights leases with oil and gas companies.

In doing so, a steady stream of mineral royalty payments can be earned as a fixed percentage on the monthly profits from natural resource sales. Mineral royalties are only available in a few countries throughout the world, with the United States being one of the few nations that allow the private ownership of mineral rights.

Conclusion

In conclusion, we hope that this article was helpful to people selling their artwork. We also how that you will utilize a 1031 exchange. When comparing new, like-kind properties, we strongly suggest considering mineral rights as a great part of any diverse investment portfolio.

If you have further inquiries on 1031 exchange artwork, feel free to reach out to us here.

1031 exchange rental property

Do you know one of the most common ways to make your money work for you? Here in the United States, it is to invest in a rental property. Homeowners begin to realize fairly quickly this opportunity. They realized that purchasing a property and renting it to another is a great way to earn passive income. This is without having to perform that many day-to-day tasks. We will talk more about 1031 exchange rental properties in this article.

Of course, rental properties do not always pan out the way that some land and building owners had expected. Some properties may have trouble acquiring consistently paying tenants. Other assets may be better off sold for a tremendous amount of money.

With a large sale, comes large taxes. If you plan to sell your rental property, then it is important to be aware of the possibility of a 1031 exchange. This is one of the smart tools that many savvy investors are using. In this article, we will outline the steps necessary to 1031 exchange rental property and maximize the potential for reinvesting your funds.

How to Sell Your Rental Property

Of course, you can 1031 exchange rental property only once the property is sold. Rental properties are not by definition rental properties. Planning to sell your rental property to a new owner? Then they may live in the space part or full time without continuing the legacy of leasing out space.

With this in mind, coastal areas and vacation destinations are full of short-term rental properties. Whereas most American cities have long-term rental properties looking for monthly tenants. This can be in the residential, commercial, and industrial spaces.

With all of this in mind, there are essentially an unlimited amount of ways that you can go about selling your rental property. The secret is to find the right buyer and put the property in front of as many potential investors as possible. Today, this is most commonly useable by taking advantage of online retailers, specialty real estate agents, and property auctions

Determining the Value of a Rental Property

Depending on the type of property, a rental space can have a tremendous range of values. Rental properties are essentially a sum of their parts, but also have a lot of external factors to consider when putting a price tag on a personal asset.

In most instances, the value of a rental property is determinable by:

  • The size of the property
  • Number of buildings and building types
  • Property leasing history (short vs. long term)
  • Current physical condition
  • Market trends
  • And more

Of course, the true value of your rental property is only the amount that someone is willing to pay for it. Smart bargaining and demonstrated income potential will serve as allies when putting your rental property in the eyes of serious buyers.

In some cases, existing tenants may have an interest in purchasing the property that they are currently leasing. While this is saving them a ton of time and cost on moving, selling to existing renters is usually done so at a discountable rate if the relationship is strong thus far.

Taxes Paid on the Selling a Rental Property

Rental property sales are typically for a lot of money. Unfortunately, this means that rental property sales generally come with a large amount of taxes paid on the income generated from the financial exchanges. While landowners are no stranger to paying property taxes, most expenses applied to the sale of a rental property are one-time-only. These include:

  • Depreciation Recapture
  • Federal Income Taxes
  • Capital Gains Taxes
  • Sales Taxes
  • Local Taxes
  • And More

With governments taking their piece of the pie, it is not uncommon to pay as much as 40% in taxes on the sale of a large rental property. Some of this is avoidable, however, if taxpayers choose to utilize a 1031 rental property exchange.

1031 Exchange Rental Property

Rental properties are sellable using a 1031 exchange. This is an IRS procedure to eliminate the partial or total amount of capital gains taxes on the sale of private property. By trading up for another large investment, taxpayers’ capital gains taxes are deferrable if they are reinvesting the proceeds from a rental property sale into a new kind of asset.

As with most governmental dealings, 1031 rental property exchanges can be painstakingly detail-oriented with paperwork and deadlines to fill out and meet with precise requirements. Because of this, we strongly recommend that both new investors and experienced wealth managers use a 1031 exchange intermediary to make sure that everything is done correctly.

Rental Properties Like-Kind Properties

First, rental properties must go through the exchange for something that is “like-kind” for a valid 1031 exchange. Thankfully, the IRS views rental properties in the same what that they do most other private assets. For this reason, rental properties can be exchanged for

  • Commercial Buildings
  • Gas Stations
  • Shopping Malls
  • Apartments
  • Homes and Condos
  • Water and Ditch Rights
  • Mineral Rights and Royalties
  • And more

1031 Exchange Rental Property – Timeline

Once a rental property is finally sold, then taxpayers have 180 days to purchase a new asset to qualify for a 1031 exchange. Before this, at least one property must be identified (but not necessarily purchased) within 45 days of the sale.

For additional requirements, please see our 1031 Exchange Rules and Requirements Page.

What to 1031 Exchange Rental Properties For

At the end of the day, there are a lot of different ways that you can reinvest the funds from a rental property sale. However, the United States is one of the few countries that permits taxpayers to invest in might rights.

By purchasing mineral rights, you can become the owners of the subsurface of a property. With this, you can enter into an oil and gas lease, which allows energy companies to extract and sell resources from your property. In doing so, mineral rights are useable to establish another great passive income stream, from monthly mineral royalty payments.

1031 Exchange Collectibles

Many people do not understand the lure of certain collectibles. There are a ton of different kinds of high price tag items. These items are sellable to enthusiasts around the world. From coins and watches to antiques and cars. Collectibles are sellable individually or as part of a larger collection of unique products. This is where 1031 Exchange Collectibles comes in as an investment.

If you sell a collector’s item for a significant amount of money, then taxes are applicable to the sale. For function or decorative, one-of-a-kind pieces of history. taxpayers can choose to utilize a 1031 exchange on the sale of a collectible. In doing so, capital gains taxes are deferrable so long as another property is purchasable in the collectible’s place.

Whenever it comes time to let go of your collectibles, we highly recommend looking into purchasing mineral rights through a 1031 exchange. With mineral rights, nothing is taking up space in your house and a mineral royalty check may be in the mail next month.

In this article, we will outline the steps to take in order to properly sell collectibles with a 1031 exchange. After this, we will make the case for mineral rights and royalties as one of the best possible reinvestments of your capital.

How to Sell Your Collectibles

To initiate a 1031 exchange, first, you must sell your collectible property. Obviously, there are a ton of different personal property items that can be considered a “collectible.” Under IRS law, the following can be considered a collectible in the event of a 1031 exchange:

  • Cars
  • Rugs
  • Antiques
  • Coins
  • Stamps
  • Metals
  • Gems
  • And much more

If there is a dedicated community around your collectible, the best way to sell your item is to connect with members of that community that may be interested in purchasing it. With this in mind, it has never been easier to interact with a global community on the internet. Depending on your collectible type, if it is valuable, there is probably a message board somewhere that would be interested in learning more.

Determining the Value of Your Collectibles

As we alluded to earlier, collectibles come in all shapes and sizes. Whereas some collectibles lose their value (sorry, Beanie Babies), others may appreciate in value over time. In some cases, collectibles will have dedicated websites or in-person events in which enthusiasts can freely buy or sell their collectible items.

There are many factors that influence the value of a collectible, including:

  • The approximate market value
  • Condition
  • Age and number of previous owners
  • Type of sale (i.e. to an individual or resale shop)
  • Ability to bundle with other collectibles in the same deal
  • Shipping or logistics
  • And more

If they are not functional, collectible markets can be very unpredictable. While many private owners simply collect for the love of the game, there usually comes a time to depart with assets that either take up space or are ripe for selling.

Taxes Paid on the Selling Collectibles

If you sell your collectible property for a significant amount of money, then you can also expect to pay a significant amount of money in taxes. Although the exact figure is largely dependent on your location and the size of your sale, the following are usually applied to high-ticket collectible sales:

  • Federal Income Taxes
  • Capital Gains Taxes
  • Sales Taxes
  • Local Taxes
  • And More

Experienced investors are well aware of capital gains taxes, whereas those selling their first collectible at a highly appreciated rate may not. Capital gains taxes are only applied if a significant amount of money is made on the sale, but they can also be avoided with a 1031 exchange.

Selling Collectibles with a 1031 Exchange

With a 1031 exchange, the IRS allows individuals to essentially “trade” collectibles for another property in order to avoid paying capital gains taxes. If the new property is of greater value than the collectible, then it is likely that a taxpayer will become eligible to defer 100% of the capital gains taxes that would otherwise have been applied.

Collectibles Like-Kind Properties

According to the tax code, collectibles must be replaced with “like-kind” property in order for a valid 1031 exchange to be accomplished. Although most collectors may not consider their items to be similar to homes or stores, the reality is that a 1031 exchange can be used to purchase practically any kind of personal property while deferring capital gains taxes.

The IRS considers the following “like-kind” properties:

  • Mineral Rights and Royalties
  • Farms
  • Homes
  • Condos
  • Apartments and apartment buildings
  • Stores and strips malls
  • And s much more.

Collectibles 1031 Exchange Timeline

The day you sell your collectible, your eligibility for a 1031 exchange begins. You must identify at least one property that is considerable as a replacement for your capital. You can accomplish it in the first 45 days. In total, taxpayers have just 180 days, or about 6 months, to purchase a new property in a 1031 exchange.

1031 Exchange Intermediaries for Selling Collectibles

There are deadlines to meet and paperwork to file. Many first-time and experienced investors choose to use a 1031 exchange intermediary when selling collectibles. In doing so, specialized industry professionals can help make sure everything goes to your plan. Helping to identify market-specific properties for the exchange that are useable to purchase.

Why Purchase Mineral Rights and Royalties?

Mineral rights and royalties are a strong part of many American portfolios, even though they are not readily available throughout the world. Here in the United States, it is impossible to lease your mineral rights to oil and gas companies in order to extract and profit from the natural resources in your property’s subsurface.

With monthly mineral royalty payments, investors can receive a passive income stream generated from a successful oil and gas lease. In today’s world, resource scarcity is as critical as ever, making mineral rights a sound investment for leasing or reselling in the future.

If you have further questions about 1031 Exchange collectibles, feel free to reach out to us. 

1031 Exchange Timberland

Most people’s first associations that come to mind are usually not related to the term’s original definition. This is when the word “timberland” is up today. To many, Timberland is just a footwear brand. To others, Timbaland is a famous American music producer. How about savvy investors and industry workers? For them, timberland is simply a private ownership patch of property to grow and harvest lumber. Let’s talk more about 1031 Exchange Timberland today.

Timberland is a great asset for producing massive amounts of wood above a property’s surface. This is useable as fuel, framework, and furniture. With this in mind, timberlands are commonly purchasable, can develop, and sellable for large profits.

How to maximize the sale of a timberland’s profits? Taxpayers can use a 1031 exchange to defer the capital gains taxes on the sale. How about in today’s resource-scarce world? We recommend investors turn below the surface of the earth for their next investment in mineral rights.

In this article, we will outline the steps to take in order to sell timberland and utilize a 1031 exchange to purchase mineral rights.

How to Sell Your Timberland

The first step to using a 1031 exchange is to sell your property. Selling timberland has been commonplace since before the foundation of the United States. So there are many long-standing systems in place for finding a buyer. Today’s timberlands are under the ownership of a myriad of different kinds of private investors and companies, with many organizations purchasing timberlands with a Real Estate Investment Trust.

Selling Timberlands is rarely done alone. It is usually most profitable with the help of a specialized intermediary. With this said, today’s technology makes it easier than ever to sell timberland in digital marketplaces that can attract buyers from anywhere in the world at any time.

Determining the Value of Your Timberland

One of the most commonly asked questions when selling timberland relates to determining its value. Timberland can be bought and sold on the open market. Moreover, sellers can usually see similar lands for sale and base their initial pricing on that figure.

Timberland is valued on a small set of criteria that includes:

  • Land size
  • Current status and conditions
  • Access and distribution channels
  • Additional income stream (i.e. mushrooms, nuts, etc.)
  • Current profitability

Of course, the price at which you sell your timberland can only be valuable at the price which an individual is willing to pay. Timberland is generally sold to private investors, but can also be sold to national and local land preservation organizations for a large one-time deal.

Taxes Paid on the Selling Timberland

If all of your hard work has paid off and you made it big selling your timberland, don’t start counting your money too soon. Nearly 40% of your sale may be taxed by local, state, and federal governments at a variety of rates. Depending on your location, timberland sales can be influenced by:

  • Federal Income Taxes
  • Capital Gains Taxes
  • Sales Taxes
  • Local Taxes
  • And More

As some first-time investors may not know, a 1031 exchange is an IRS-provided opportunity to defer some or all of the capital gains taxes paid on the sale of timberland.

Selling Timberland with a 1031 Exchange

With a 1031 exchange, the sale of timberland must be followed by the purchase of a similar property investment. If the new purchase is of equal or greater value then taxpayers are likely able to defer all of the capital gains taxes paid on the sale. To do so, investors must meet timelines and file the proper government paperwork. In most cases, taxpayers will use a 1031 exchange intermediary to ensure that everything goes as smoothly as possible.

Timberland Like-Kind Properties

According to the IRS code, timberland sales are eligible for a 1031 exchange with the subsequent purchase of most kinds of personal property. As both land and the grounds for business, timberland is one of the oldest but most interesting investments available in the United States.

In the event of a sale, a 1031 exchange can be used to purchase:

  • Farmland
  • Water and Ditch Rights
  • Mineral Rights and Royalties
  • Golf Courses
  • Collectibles
  • And more

Timberland 1031 Exchange Timeline

Although it may take a considerable amount of time on the market for a patch of timberland to sell, once it is sold, the clock starts on your opportunity to cash in on a 1031 exchange. Taxpayers have an exact 45 days after the sale to properly modify one eligible, like-kind property. After that, there is a total window of 180 days to purchase a new property that will be permissible for a valid 1031 exchange.

Why Purchase Mineral Rights and Royalties?

Like timberland, mineral rights are leaseable to a resource production company. Here, oil and gas companies can go about finding, extracting, and selling the natural resources that are found within your mineral rights designation.

In doing so, mineral royalty payments are signed to your name as a fixed percentage of the operation’s monthly revenue. As an owner of a subsurface asset, you are then in control of renewing a mineral rights lease or selling your mineral rights to another owner.

Here, the main difference is that timberland produces a renewable resource, whereas mineral rights do not. With this in mind, the window for investing in affordable mineral rights may be closing as the resources become more and more valuable. For this reason, mineral rights are a sound investment after selling your timberland.

Conclusion

At the end of the day, timberland is a strong investment. However, this means that developments and improvements can lead to large sales when the time is right. In order to get the most out of your timberland sale, a 1031 exchange can help defer costly capital gains taxes. When considering your new property, mineral rights are among the most similar and smartest reinvestments available today.

If you have further questions about the topic of 1031 Exchange Timberland, feel free to reach out to us here.