Transition in the Inauguration and the IRS Section 170 Bargain Sale

The first month of 2017 is seeing many different transitions, from government, industry and socially. The fresh page of the new year is a great time to look at the transitions your business can take to make 2017 a great financial success. A 170 Exchange can help you remove underperforming properties and gain a significant tax deduction for your income tax, while also assisting a not-for-profit organization. A 170 Exchange benefits both businesses and charities through a unique tax code similar to the 1031 Exchange, however with the incoming government and their stance on tax reform, acting now to utilize the 170 Exchange for your business is a wise idea.

The US Government introduced the 170 Exchange in the War Revenue Act as a way to encourage businesses to act philanthropically, by donating unwanted properties to charity. The charitable act is rewarded with a significant offset of income tax, making the situation a win-win for business and not-for-profit organizations. The 170 Exchange website can assist with finding a local charitable buyer looking to benefit from a 170 Exchange transaction in your local area. The tax rebate for conducting a 170 Exchange can be considerable; however with the radical changes the new government is proposing, it would be best to finalize any Exchanges before any significant tax reform.

Businesses who often conduct 170 Exchanges are high income tax organizations that are looking to legally reduce the income tax they pay. Over $8 billion worth of 170 Exchanges are transacted annually. There are three main benefits for conducting a 170 Exchange,

1. The Seller may receive a considerable tax deduction.
2. It has the potential to reap greater benefits than a traditional market sale.
3. It is a transaction found in the IRS code, so it is a safe and positive way to sell real estate.

With the transition to the new government in early 2017, it is wise to act now before the tax system changes. By transitioning your underperforming properties to charity organizations, you can streamline your business and ensure you are in the best shape to be successful in 2017. Go to to see property requirements and get matched to a 501(c)(3) approved nonprofit organization looking to buy in your area.

The Welfont Group firmly believes that 170 exchanges represent one of the best solutions for business people with specific circumstances, yielding impressive tax benefits when accomplished in association with the 1031 exchange. Visit this Facebook page for more information.


Biggest mistakes made by commercial real estate investors

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Commercial real estate investors deal with more and bigger things than the ordinary man. The numbers are bigger. The risk is higher. The hours are longer. With that in mind, the world of commercial real estate investing is not without its perils. Here are some of the mistakes made by commercial real estate investors that have caused huge dents in their business.

Neglecting the state of the local market: Local markets make up half of commercial real estate evaluation. Property comprises the other half up. Without knowing the trends of the local market such as population, income, employment rates, numbers of same commercial structures, community infrastructure, accessibility, and others, investors may find it nearly impossible to hook prospective buyers.

Ignoring the tax and the way it moves: This sounds simple enough to remember, and yet, investors still forget it. Taxes are often updated, and it’s best for investors to keep up and adjust. Some investors find ways to skirt around the rules, which is okay as long as it’s within the bounds of propriety. However, there are times when whether intentionally or unintentionally, investors don’t get to pay the tax. This is one of the biggest mistakes they can make since it can potentially land them behind bars.

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Headquartered in Tampa, Florida, The Welfont Group assists clients in finding, analyzing, financing, purchasing, managing, and selling commercial real estate properties. For more information about the boutique commercial real estate brokerage company, visit this website.

Great ways for people to market their property

Marketing commercial property doesn’t need to be a chore. People handling the property can both have fun and still attract a sizeable crowd. The trick is to have a marketing strategy that appeals to the majority of the residents in the community. Here are simple marketing techniques with a creative twist.

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Holding an open house to show prospective clients, buyers, and tenants featured commercial spaces are okay. But having an event to stir things up during the open house is better. A great example would be having the local talent such as musicians, comedians, and other artists from the community perform during the open house. Not only will this attract attention, but live entertainment can also keep prospects in the area longer. This allows them to feel more comfortable in the premises and introduces them to the life that can be had in the neighborhood.

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Commercial real estate investors can strike up deals with other business establishments either in the neighborhood or those currently within the business complex. In exchange for discount coupons, new residents, buyers, or tenants, agree to help these businesses as well. Community business establishments such as supermarkets, restaurants and bars, movie theaters, and the like can all work hand-in-hand to improve the commercial value of the area through cooperation.

TheWelfont Group is a boutique commercial brokerage company based in Tampa, Florida. The company specializes in helping its clients find, analyze, finance, purchase, manage, and sell commercial real estate properties. Discover more about the Welfont Group and commercial real estate by visiting this website.

The 3 Key Benefits of a 170 Exchange


If you’re considering a 170 exchange, you may be wondering how this kind of exchange can benefit you when compared to a traditional sale. Let’s take a look at the three key benefits of a 170 exchange.

1. You will receive a good chunk of the sales proceeds in cash at closing. In most cases, the buyer will pay cash up front in a 170 exchange, though it is also possible for this cash to be paid out over a period of time depending on the specific terms of the sale. However, the caveat here is that this is likely to only be a minority share of the sales proceeds, as you will likely receive the majority of the proceeds as a charitable deduction from your taxes.

2. You will receive a substantial charitable deduction. The United States Federal Income Tax Code allows taxpayers (both individuals and companies) to deduct their charitable contributions from their taxable income. This applies to 170 exchanges and it can save you a significant amount of money.

For example, let’s say you have a 200,000 square-foot office building that your company is no longer using. The building has an assessed value of $1.2 million, but you’re having difficulty selling. You decide to go for a 170 exchange, selling the building to a large charitable foundation that has outgrown its current office. Though the assessed value is $1.2 million, you sell it to the foundation for $200,000. That mans that you will receive a substantial charitable deduction for the remaining $1 million, as in a 170 exchange the difference between the appraised fair market value and the selling price is always considered a charitable donation.

It is important to keep in mind here that the organization you are selling to must meet certain requirements set out by the government. Specifically, they must have status as a tax-exempt non-profit charitable organization under section 501(c)(3) of the tax code. This is key to ensuring that the different between the appraised fair market value and the selling price can be counted as a charitable motivation.

3. You will enjoy a sense of satisfaction that only comes from giving back in a way that helps others. Beyond just financial gain, a 170 exchange provides a sense of satisfaction that can only come from know that you’ve given back to your community and helped others out in a meaningful way. All in all, the benefits of a 170 exchange extend well beyond your own bottom line, as this kind of transaction is a great way to give back to others.

In conclusion, a 170 exchange offers the best of both worlds to the buyer and seller. The buyer gets access to a property at significantly less than the market price, while the seller enjoys a number of advantages, thanks to his or her charity.