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.


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