Diversify from real estate to bonds on a tax-deferred basis

Effectively replace real estate exposure with a corporate bond. Low leverage property leased to highly rated credit tenants offer the opportunity to 1031 exchange higher risk real estate into a long term bond equivalent security. This can be powerful personal financial and tax planning if used appropriately. This type of bond equivalent property also can allow for enhanced liquidity with improved access to the credit markets to raise cash levels.

Insiders holding publicly traded stock looking to diversify with other insiders

Minimize cash investment for a stock swap fund.

Permit tax deferred distributions

Add basis to your holdings with little equity.

Finance mergers and acquisitions

An acquiring firm can uncover significant cash, defer tax recognition and book up the balance sheet

Recapitalize a company without diluting the equity

A company with low basis real property can access substantial cash, defer tax recognition and enhance financial statements

CIRCULAR 230 DISCLOSURE: This communication is not a tax opinion. Pursuantto Internal Revenue Service regulations, to the extent that this contains
tax advice, it is not intended or written to be used by a taxpayer for thepurpose of avoiding tax penalties that may be imposed on the taxpayer or forpromoting to another party any tax related matter addressed herein.

Corporate Finance