Consider Changing Your Investment Strategy

Whether it’s a change in a retail climate or perhaps a promising new venture,when real estate investors need to react swiftly, one of the best tools to consider is an IRS Section 170 Bargain Sale.
Here’s a quick summary of a Bargain Sale:
  • An owner offers a property to a qualifying nonprofit at a reduced sales price.
  • The nonprofit accepts and pays cash at closing for the property.
  • The seller additionally receives a tax deductible for the difference between the sales price and the Fair Market Value, usable for up to five years.
Here are a few of the reasons an investor might want to consider a Bargain Sale:
  • Tax Liabilities –Much of the benefit comes from a large charitable contribution deduction to a seller with a corresponding tax liability.
  • Philanthropy — This statute was originally passed to enhance and encourage gifting.
  • Quick Sale — Often, a Bargain Sale will be completed much more quickly than a traditional transaction, primarily for the lack of a need to traditionally market the property.
  • The Next Business Venture — Combining the cash at closing with freed-up funds previously designated for tax payments, many owners can often move into a new and promising undertaking.
  • A Favorable Appraisal–The appraisals allowed under a Bargain Sale are extremely advantageous to the seller. Rather than a standard “bank” appraisal, a Bargain Sale appraisal tips the assessment towards the seller, pushing the profit possibilities higher that in a regular sale.
The Bargain Sale can allow an investor to shift focus and free funds for a new endeavor quickly, so reach out to Dr.Joe Johnson’s team at Welfont (Welfont Joe Johnson)today for a clear view of your options.

Comments

Post a Comment

Popular posts from this blog

How Bargain Sale Valuations Work

Image
The GoodField Foundation is Dr. Joe Johnson’s biggest professional passion. This Ministry Investments group is funded by  Welfont Joe Johnson  and dedicated to funding entrepreneurial research, entrepreneurial ministries, and underprivileged entrepreneurs throughout the world. Often, when a CPA, broker or seller sees a Bargain Sale Appraisal of a property, there may be skepticism. Initially, his/her thought may turn to the potential of something just too good to be true. The result from not understanding the difference between how Bargain Sale valuations work and the traditional retail appraisal process is that many profitable transactions are not considered. Sellers lose opportunities for cash at closing and tax deductions, brokers don’t receive commissions, and nonprofits can’t benefit from the transaction when the proposal isn’t even considered due to lack of knowledge or at worse misinformation. With a better understanding of the Bargain Sale Appraisal method, p...
Read more

Helping Nonprofits with Real Estate

Image
Welfont is a boutique commercial brokerage company that focuses on helping our clients find, analyze, finance, purchase, manage and sell commercial real estate properties. We specialize in representing real estate investors and tax-exempt institutions. Using IRS-approved tax strategies, including 1031 Exchange and the IRS Section 170 Bargain Sale, we help clients reach their giving potential.  Welfont Joe Johnson  is the CEO of the company. In 1917 Congress enacted the War Revenues Act to finance WWI and greatly increased tax rates. The major concern amongst congress was that it would greatly impact  charitable giving . As a compromise, the  charitable tax deduction  was created. There was an alignment with the governing philosophy as nonprofits have typically assumed the responsibility of the social welfare net that the government was ill prepared for and frankly did not want to provide for. The exemption from taxation of money or property d...
Read more

Real Estate Sustainability and the IRS Section 170 Bargain Sale

Image
GoodField is a small, nimble and out-of-the-box company led by  Welfont Joe Johnson .  Our company is organized for the exclusive purpose of finding and making efficient, strategic, and profitable investments in high-growth startups and distressed real estate without the distraction of multiple parties, such as partners, investors and funds. Nowadays you hear a lot of people talking about sustainability.  And what most of them are talking about are natural resources and the environment, and how we need to find and use resources that are easily replaceable and do not cause harm to the environment in the process of harvesting that resource. So, when we talk about sustainability in real estate, most people think about the building materials involved in construction, and the energy required to heat and/or cool these structures.  What about existing buildings and already developed land, that for whatever reason, are no longer economically viable due to location, o...
Read more