November 10, 2015
Cell tower leases are financial assets, just like a stock, bond, mutual fund, real estate investment or certificate of deposit. However, there is a big difference between your lease and your other financial assets: the income from your ground lease will stop flowing one day, and there will be no residual, accumulated or investment value at the end.
Focusing on Long Term Growth. Converting your cell tower lease into a lump sum cash payment is not about needing money – it’s about converting a finite income stream with no end value into a lump sum cash payment that can serve as a growth-oriented investment vehicle. Converting your lease to a cash lump sum provides a broad variety of investment opportunities (with tax benefits) that can create value for your family long into the future.
Important tax advantages. Moreover, the rent you receive from your cell tower lease is taxed as regular income. On the other hand, the proceeds from a ground lease buyout are, in most cases, taxed as capital gains, which for most taxpayers is a lower rate than income taxes. Using your lease sale proceeds to buy a property that is used for business or investment will, in most cases, make your transaction eligible for a 1031 exchange, which defers all capital gains taxes.*
Converting cell tower leases into a lump sum cash payment is not about needing money
If you’d like to learn more about the process of liquidating your cell site lease, give us a call today at 1-800-843-2024 or click here here to submit your information and we’ll contact you.
There is never a cost or obligation to speak with us. We’re here to provide you with straightforward information to help you make the best possible financial decision regarding your cell site lease.
* IMPORTANT TAX NOTICE: Landmark does not provide advice on any income tax, capital gains tax or other tax requirements or issues related to any transaction in which Landmark is a party or participant in any fashion. Use of any information obtained from Landmark or its affiliates or agents or referral by Landmark or its affiliates or agents is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for tax questions and assistance. The information above is provided as a general introduction to the 1031 exchange process. Prospective sellers and buyers of real estate should always consult their attorney and tax advisor prior to entering into a 1031 transaction.