Are you selling and replacing a business aircraft?

Exchange Aircraft and Defer Taxes

Paying taxes unnecessarily simply doesn’t make good business sense. Yet, when it comes to buying and selling business aircraft, many people do exactly that. The result is that they have less money available for new aircraft, and equipment upgrades.

TVPX can help you defer the taxes arising from the sale of an aircraft and maximize your federal and state tax benefits. TVPX will work closely with your tax and legal advisors to deliver creative and cost-effective solutions tailored to your particular needs. Each transaction structure is different based on facts and circumstances.

  • Do you need to properly structure your 1031 Exchange transaction?
  • Are you selling and replacing a business aircraft?
  • Are you paying taxes unnecessarily?
  • TVPX can help you defer the taxes arising from the sale of an aircraft and maximize your federal and state tax benefits.
  • TVPX will work closely with your tax and legal advisors to deliver creative and cost-effective solutions tailored to your particular needs.

Please call to discuss how to properly structure your 1031 Exchange transaction. +1 978.610.1234

info@TVPX.com

Please call to discuss how to properly structure your 1031 Exchange transaction.

TVPX http://www.tvpx.com

A Successful Tax-Deferred 1031 Exchange for Real Estate

 

 

A Successful Tax-Deferred 1031 Exchange for Real Estate

Success! A manufacturer was closing down and selling an obsolete facility for $2 Million, and planned to purchase a new facility for $3.5 Million. The tax basis of the relinquished property was $1.3 Million resulting in a potential taxable gain of $700,000…. How did this go? A Successful Tax-Deferred 1031 Exchange case study.

As a company grows and prospers, it may decide to sell real property that no longer serves its needs, and replace it with more suitable real property. If a disposition and subsequent replacement of real property is structured properly, taxpayers can utilize IRC Section 1031 to defer the capital gain or depreciation recapture due from the sale of relinquished property.

Our expertise is 1031 Exchanges. Section 1031 of the U.S. Internal Revenue Code allows investors to defer capital gains taxes on the exchange of like-kind properties.

To successfully structure and complete an exchange of real estate under IRC Section 1031, there are many critical details that need to be considered:

  • Replacement Property – Do you know what you are going to purchase in order to replace your relinquished property?
  • Timing — Do you have exchange timing issues? Are you buying before selling?
  • Other taxes — How do transfer taxes affect the cost of your exchange?
  • Value — Are you selling for more than you are buying? Will you make improvements to the replacement property? What are your options to maximize your tax deferral?
  • Deposits — How are they held? Are you in constructive receipt of sales proceeds?

Give us a call to help guide you through this process to make your exchange the most successful transaction possible on aircraft, property and real estate.

Contact Us: +1 978.610.1234.

A Successful Tax-Deferred 1031 Exchange case study.

Do you need a Tax-Deferred 1031 Exchange?

TVPX Success Story regarding a tax-deferred 1031 Exchange

A Fortune 500 Company was selling its old aircraft for $16.0 Million. The old aircraft had a zero tax basis resulting in a potential taxable gain of $16.0 Million. Their intent was to replace the old aircraft with a newer aircraft valued at $30.0 Million. Ideally, they would have sold the old aircraft initiating a simple forward exchange identified replacement aircraft within 45 days, and subsequently closed on the purchase of the replacement aircraft within the 180 days allowed under the 1031 Exchange “safe harbor” Regulations.

Problem: The Company needed to purchase the replacement aircraft prior to selling the old aircraft because they hadn’t yet located a buyer for the old aircraft and the replacement aircraft was immediately available.

Solution: TVPX set up an Exchange Accommodation Titleholder entity in accordance with Revenue Procedure 2000-37 to purchase the replacement aircraft on the Company’s behalf and leased it to the Company with an option to purchase. The Company was able to use the aircraft, but was not the actual titleholder. Once a buyer was found for the old aircraft, it was sold beginning a 1031 tax-deferred exchange.

The Company subsequently purchased the replacement aircraft from the Exchange Accommodation Titleholder to complete the 1031 Exchange. Sales tax planning was also critical to ensure sales tax was not paid on both transfers of the replacement aircraft, which could partially negate the benefits of the 1031 Exchange.

TVPX 1031 Exchange Co (TVPX) is a nationally recognized Qualified Intermediary firm that can help you understand the 1031 exchange process from start to finish.

Our expertise is 1031 Exchanges.

TVPX can help you make educated decisions about the need to do  a 1031 exchange, and then help you structure your 1031 Exchange transaction, based on those needs. TVPX has expertise structuring exchanges on business and commercial aircraft, real estate,  and other assets held for productive use in your trade or business.

TVPX specializes in:

  • Qualified intermediary services under Internal Revenue Code (IRC) Section 1031
  • Reverse Exchange services under Revenue Procedure 2000-37

TVPX has the expertise to make it the most successful transaction possible.

Contact Us: +1 978.610.1234 or email to 1031-INFORMATION@TVPX.com.

Website: www.tvpx.com

How Does a Like Kind Exchange Work?

TVPX President to Speak at 2013 Aircraft Acquisition Planning Seminar

Tobias Kleitman, TVPX Founder, to Speak at Conklin & de Decker on December 10, 2013 – Receive 50% off Registration.

Conklin & de Decker will host their 14th Annual Aircraft Acquisition Planning Seminar in Scottsdale, Arizona on December 10-11, 2013 at the Scottsdale Plaza Resort. Tobias Kleitman will speak at the event on December 10 for a one-hour session

Unique from other seminars and workshops, the Conklin & de Decker Aircraft Acquisition Planning Seminar (AAP) is the only seminar that is designed to help the aircraft buyer, aircraft owner or aviation professional make informed decisions when buying, selling and owning an aircraft. This seminar will focus on the many areas of concern that affect the aircraft owner throughout the acquisition process.

At the event, Mr. Kleitman, President and Founder of Time Value Exchange Property (TVPX) will speak about Understanding the Dynamic of a “Like Kind” Exchange.

He’ll discuss questions such as:

  • How can you minimize the capital gains on the sale of an aircraft?
  • How does a Like Kind exchange work?
  • What about a Reverse Exchange?
  • When does doing a like-kind exchange make sense and not make sense?

Time Value Exchange Property is a nationally recognized intermediary firm that can help you understand the 1031 exchange process from start to finish. TVPX supports your process and can help you make educated decisions about the need to do a 1031 exchange, and then help you structure your 1031 Exchange transaction, based on those needs. TVPX has expertise structuring exchanges on business and commercial aircraft, real estate, and other assets held for productive use in your trade or business.

The AAP Seminar is packed full of information that will assist aviation professionals who needs to develop a plan for changing their aircraft fleet when the time is right and determine which aircraft best meets their mission profile. Attendees of the event will learn about the often confusing Federal and State taxes associated with aircraft acquisitions, depreciation, and like-kind exchanges, as well as the analysis behind the various financing alternatives and ownership structures. The latest on aircraft management, registration and creating a budget for your aircraft will also be covered in this comprehensive program.

“We are excited about the opportunity to share our experiences with the attendees at the Annual Aircraft Acquisition Planning Seminar in December. Understanding how a Like Kind exchange works and how to minimize the capital gains on the sale of an aircraft is important and we hope to give attendees some of the tools they need to understand the process,” added Kleitman.

Register for the Aircraft Acquisition and Planning Seminar today. For more information about this seminar contact Christine Preston and mention TVPX for 50% off the public registration at (928) 443-8676 or Christine@conklindd.com.

For more resources, please visit: http://www.tvpx.com/aircraft-1031exchanges/

Tobias E. Kleitman, President, Time Value Property Exchange, Inc.

Tobias E. Kleitman is the President and Founder of Time Value Property Exchange, Inc. (TVPX). Tobias has 16 years of experience in the 1031 Exchange industry and has structured over $20.0 Billion in complex tax deferred exchange transactions under IRC Section 1031 for many Fortune 500 corporations, privately held corporations, leasing companies, and wealthy individuals on their real estate, corporate aircraft, vehicle, and heavy equipment portfolios.

Prior to founding TVPX, Tobias was a Senior Vice President at Apex Property Exchange Inc. and graduated from Syracuse University. Tobias serves on the Board of Directors for The National Aircraft Finance Association (NAFA) and The Massachusetts Business Aviation Association (MBAA) and is a member of the National Business Aviation Association.) and is a former Chairman of the National Aircraft Resale Association Associate Membership.

Visit us online: http://www.tvpx.com/ or LinkedIn.

TVPX 1031 Exchange