Alternative Investments
Our access to an array of Alternative Investment products for diversification are not readily available with just any investment advisor, and are also not available to the general public. These non-market correlated investments are an important part of a well-rounded portfolio. For investors meeting net worth and income standards,* these direct investments include:
1031 Exchange Properties
When it is time to sell an investment property (met expectations, fully depreciated, retire from active management), there are many factors to consider. Whether investors are seeking to maximize gains, looking to increase the current level of income, or seeking to dispose of an underperforming asset, simply liquidating a property can create a number of taxable or recapture liabilities and obligations. Investors are taking the first step in maximizing investment results by executing a 1031 Exchange. In some of the highest tax brackets, simply “cashing out” can erode up to 40% of the gains on profitable, low basis assets on a combined state and federal level. With guidance from the Internal Revenue Service, investment sponsors construct securitized real property investments for use as suitable replacement property in a 1031 Exchange. By reinvesting sale proceeds into a securitized fractional real property program, investors may:
- Defer Tax Liabilities Indefinitely
- Keep Investment Dollars Fully Invested
- In Many Cases Improve Upon the Grade and Quality of Holdings
Conservation Land Offerings
A conservation easement is a restrictive covenant that is a voluntary agreement that allows a landowner to limit the type or amount of development or conserve and protect natural resources on their property while retaining private ownership of the land. The conservation easement is signed by the landowner, who is the easement donor, and the Land Trust or Conservancy, is the party receiving the easement. The Land Trust or Conservancy accepts the easement with the understanding that it must enforce the terms of the easement in perpetuity. After the easement is signed, it is recorded with the County in the record room and runs with the land and binds all future owners of the land.
Energy Investments
Costs to develop an oil or gas well for the elements that are not a part of the final operating well offer tax benefits. Intangible drilling costs (IDCs) include all expenses made by an operator incidental to and necessary in the drilling and preparation of wells for the production of oil and gas, such as survey work, ground clearing, drainage, wages, fuel, repairs, supplies and so on. Broadly speaking, expenditures are classified as IDCs if they have no salvage value. Since IDCs include all real and actual expenses except for the drilling equipment, the word “intangible” is something of a misnomer.