IRS Treatment of Lease Buy-Out Income

by Trish
(NC)

I'm in NC and own land that is leased to a cell tower company. I've been approached about a lease buyout and am interested only if I can sell the land as well. Does anyone have any idea or experience as to how the IRS treats lease buyouts for tax purposes? Hopefully, it can come under capital gains rates and not be taxed as regular income...of course, ideal would be no tax at all, but I haven't found anything that's ideal lately! I realize you are not attorneys, but the answer to my question is probably general knowledge for anyone with experience with cell tower buyouts.

Also, is there a way for me to find out the number of tenants on the tower; my lease is with one company, but they have the authority to sublease and aren't obligated to give me that information.

Thanks.

Comments for IRS Treatment of Lease Buy-Out Income

Average Rating starstarstarstarstar

Click here to add your own comments

Dec 06, 2013
Rating
starstarstarstarstar 		How many carriers on my pole
by: Anonymous

If you run a title search on your property, it will come up what carriers are on your pole.
Aug 05, 2011
Rating
starstarstarstarstar 		IRS Treatment of Lease Buy-Out Income
by: Anonymous

Typically on a Lease buyout the proceeds are treated as capital gains. You may be able to roll it into another property and do a 1031 exchange as well. My company Landmark Dividend has a very interesting structure that you may like as well. Its a non-recourse loan. Where instead of a buyout you pledge the lease and payments as collateral to the non-recourse loan. We have done many of these types of transactions. If you would like to know more you can contact me Oscar Velez at ovelez@landmarkdividend.com or 646-964-6728.


Regards,

OV
Aug 05, 2011
Rating
starstarstarstarstar 		Notice to all tower rental stream buyout firms, answer Trish's question and we will let you plug your company here.
by: Tower Genius

We know the answer Trish, but let's see if any of the lease buyout companies who regularly read this blog will answer it for you.

Tower Genius
888-313-9750

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Cell Tower Lease Buyout Forum.

Find out from Tower Genius how we help landlords and property owners in the USA  maximize cell site lease values and get the best possible terms for:

  • Cell tower lease agreements
  • Tower lease extensions
  • Cell site upgrades
  • Small cell proposals
  • Lease amendments
  • Tower lease buyouts offers
  • Rooftop lease buyout offers
  • Rooftop cell site audits
  • Lease Agreement defaults
  • Cell tower valuations
  • Rent reduction solicitations
  • Lease Optimization Help
  • Lease Revenue Purchase
  • Verizon Wireless 
  • AT&T
  • T-Mobile
  • Sprint
  • US Cellular
  • SBA Communications
  • Crown Castle
  • American Tower
  • Vertical Bridge
  • Lendlease Towers, Md7
  • Tillman Infrastructure
  • Lyle Company, Black Dot
  • Everest Infrastructure

We Would Like To Hear From You.
 

Cell-Tower-Leases.com
Contact Tower Genius
Please note that all fields followed by an asterisk must be filled in.

Please enter the word that you see below.