SPE 1031

I got the call late in the afternoon early in September from the most unlikely source. A wealthy businessman called me to ask for my advice with a perplexing predicament. His Bank was unexpectedly backing away from a transaction he was about to embark upon and he needed more capital to complete the deal.

This was the client that every Bank had vied for as a customer, that is, until the ballooning credit crisis. The Bank's attorney admitted that the Bank simply did not have the ability to swing the new loan. Other Banks were not able to pick up new customers because of their own lack of capital.

The Answer: a Section 1031 Exchange. Yes, the humble Section 1031 Exchange, long the darling of the no tax crowd, has assumed its new Identity as Cash Flow Protector and Debt Reducer.

In this case, by eliminating the substantial income taxes from the equation, the businessman was able to sell his business assets and acquire the new assets with the increased equity from the sale. The existing Bank was able to extend a modest amount of debt to clinch the deal.

In the past, many Businesses questioned our Firm whether it was worth the hassle of treating a sale of a business asset, such as trucks, trains, patents, copyrights or business equipment, as a Section 1031 Exchange. After all, there were depreciation and tax computations to consider.

Ever since its inception, Section 1031 Exchange has conserved and protected the cash received from the sale of assets for the purchase of new like-kind assets. Most importantly, money not paid out for income taxes can be used to purchase new assets and reduces the amount of debt needed to acquire new equipment and business assets.

At a time where the acquisition of debt will be difficult and costly, a Section 1031 Exchange will allow Businesses the flexibility to sell and acquire business assets with the minimum impact on their lines of credit and term loans. They are using every penny of the equity to continue to fund their business expansion. A Section 1031 Exchange is truly a friend to business in difficult times.

Our Company knows that Section 1031 Exchanges are complicated. We know that it is easy to make mistakes and have to pay penalties and interest as well as taxes on a botched Exchange. That is why we provide an iron-clad service guarantee to protect our Customers from Errors, Mistakes, Tax Penalties and Interest. We prepare your Tax Forms, provide a Tax Opinion and guide your staff and Advisors through the entire process from start to finish. Let us Minimize your Taxes and Maximize your Cash.