Partnership Strategies

Simplify your life

The tenant takes care of everything.

Defer your gain recognition

You may be able to complete a trade with less equity than your capital gain tax would have been.

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.

Debt Component to a multi-property exchange

Replace the debt component of a multi-property 1031 exchange with 10% equity or even less and free up surplus exchange cash to acquire other unleveraged real estate with value added potential in a multi-property exchange.

Partnership planning approaches

Solve a myriad of partnership restructuring issues when partners have divergent goals and income tax planning objectives.

Permit tax deferred distributions

Add basis to your holdings with little equity.

Defer foreclosure gain recognition

The IRS considers a non-recourse foreclosure to be a sale. If your loan balance is more than your tax basis, you have capital gain and potential tax to pay out of pocket. Defer the tax by using the tax dollars to purchase net lease assets to maintain your before tax net worth.

Add basis to your partnership

Cash distributions are a return of basis, until you run out of basis. Affordably add basis to your partnership.

Build equity

The tenant can pay off your debt, securely year by year.

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.