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| 1031 ADVISOR March 2009 |
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Intangible Asset Exchanges Lead to Innovation and Growth As we have discussed in the past, intangible assets can be exchanged for like-kind intangible assets. The key, of course, is planning in advance to separate the assets to be sold and acquired to maximize the benefits of the Exchange. Innovation. If history is any guide, the period during the Great Depression, from 1931 to 1938, was a period of tremendous innovation by US Companies. U.S. Companies expanded the size and number of laboratories to find new and innovative products to bring to the market. These products, such as nylon and Teflon, led the way to greater prosperity for the innovators and the country as a whole. Intellectual (IT) Property Assets. Companies are faced with issues of how should they reposition their intellectual (IT) property assets for the greatest effect on their Company success. Section 1031 Exchange can permit Companies to buy and sell IT assets without incurring income taxes. This further enables the companies to reposition their corporate assets to take advantage of new products and new innovation. By avoiding income taxes on the sale of IT assets, the Companies are able to conserve their cash flow at a time when obtaining additional loans and refinancing are increasingly more difficult, even for the largest public Companies. Furthermore, during a significant economic downturn, investors are looking for growth opportunities. Those companies investing in innovation and growth will attract the new investors, rather than conventional assets, such as real estate or companies in mature industries. Economic Survivors. The survivors during this period of economic turbulence will be the innovators. The innovators who creatively use their capital wisely by maximizing the use of Section 1031 Exchanges will be the best positioned to commit their resources for new products and growth. Intangible Exchanges are difficult to exchange because each asset must be reviewed and compared against the asset(s) to be acquired in order to determine if it can be exchanged. Rely on Strategic Property Exchanges, LLC with our Board Certified Tax Attorneys to guide you through the process. We provide step by step assistance, tax reporting and tax opinions to safeguard your exchanges. No one has greater protection and guidance for you and your clients—unlimited FDIC insurance, errors and omission insurance, tax reporting and tax opinions. At Strategic Property Exchanges, LLC our commitment does not stop at the closing table. Our services continue throughout the exchange process, through the filing of your tax return and beyond. Let us help you build your future.
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