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OUR FAMILY OF
STRATEGIC TAX SERVICES

June 24, 2015

Focused Business Solutions

#1031 Advisor
 

Financial success does not result from a single action or strategy. Rather it is achieved over time, following plans carefully thought out over a period of years. Clients today look for an edge. Your guidance is crucial to their success. Our specialized knowledge with tax-free asset replacements can be invaluable as a resource for you.

Clients that efficiently acquire and dispose of business and investment assets through the use of tax-free exchanges reduce their financial costs below that of their peers; retain more equity and improve cash flow. However, tax-free exchanges face unique, complex and challenging accounting, tax and legal issues. You need experienced tax attorneys and staff who: (1) can handle all these many issues on a turn-key basis; and (2) give you guarantees in writing to support the successful completion of your client's exchange(s).

Timing and structure of the transaction are critical to the successful execution of a tax-free exchange. You need experts who can help you structure, coordinate, manage and conclude their tax-free exchanges. They need to be able to design creative and innovative exchange solutions to allow business owners and investors to re-invest millions back into their businesses or investments.

Does your Qualified Intermediary provide the following value-added services?

  1. Software tools and expertise that provide fast and free analysis of client options to replace assets and to determine the best structure to maximize value.
  2. Solutions-oriented focus on
    a) Reducing taxes in the transaction
    b) Deferring taxes in the transaction
  3. Eliminating taxes in the transaction
    a) Turn-key, fixed cost pricing for all exchanges included
    b) Four levels of service to fit your and your client's needs
    c) Sample documents provided at no cost to client
    d) Escrowed funds held in client's name and tax id
    e) Dedicated team to manage processes
    f) Service guarantees to clients
  4. Objective and comprehensive tools to assist you
    a) Real estate what-if calculations
    b) Equipment what-if calculations
    c) Trucking specific (supported by industry experts, Trincon Group, LLC)
  5. Comprehensive menu of exchanges to fit client's needs
    a) Real estate, leasehold and natural resource exchanges
    b) Tangible personal property equipment exchanges
    c) Intangible asset exchanges such as patents, copyrights and formulas
    d) Collectible Exchanges including precious metals and gems as well as artwork
    e) Exchange of Foreign assets subject to U.S. taxes
    f) Mixed asset exchanges, including real estate, tangible and intangible property
  6. Risk management for you, and for your client

For over 25 years, the team at Strategic Property Exchanges (SPEX) has designed creative and innovative exchange solutions. Contact the Exchange Experts at SPE X.

Focused Examples of SPEX Services

EXAMPLE #1: Existing business out-grew its current facility. The business needed to acquire land, build new structure, move in, and then sell the existing building to expand operations. Owner faced cash flow and debt limitations due to growth, as well as projected taxes due on final sale of old facility, limiting size of the new facility. SPEX structured the transaction to defer the income taxes on the sale of the facility, freeing up equity to be used to build larger facility and reduce debt costs.

EXAMPLE #2: A trucking business wanted to replace its aging fleet with more efficient and productive assets, but was unable to increase its debt due to the Lender's cash/debt ratio considerations. SPEX illustrated with Asset Turn Maximizerâ„¢ how the firm could replace its aging fleet by shortening its current asset holding cycle, while keeping the debt/equity ratio the same, to the satisfaction of the Lender.

EXAMPLE #3: A Partnership was approached to sell a property with large gain, but the partners were not in agreement as to an exchange due to varied priorities. SPEX structured the transaction in accordance with current tax law, combined with a SHOULD tax opinion, allowing each partner to address their personal tax issues by use of exchange or paying tax on gain.

EXAMPLE #4: A foreign national business executive residing in the U.S. wanted to sell his investment property in the UK and replace it with investment property in France. SPEX structured a 1031 Exchange applicable to overseas property including currency transactions, FATCA and FBAR limitations, harmonizing foreign property law requirements and U.S. tax rules.

EXAMPLE #5: A hotel owner wanted to use the proceeds from his exchange to build improvements on land that he already owned. SPEX designed a construction leasehold exchange, rather than forcing him to purchase new property, thereby allowing him to reinvest his equity into his existing property.

EXAMPLE #6: An owner of a submarine sandwich franchise sold his location, including the rights under the franchise, the real estate and equipment and fixtures and replaced it with another submarine sandwich franchise. SPEX designed the multi-asset exchange to permit the deferral of gain from numerous assets classes.

 
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