Tax Deferral Strategies

Frequently, the premium value we can achieve in the sale of a facility is well above the original construction cost or purchase price, resulting in a taxable event. To ensure prudent financial decisions for our clients, the ERE team has facilitated the implementation of multiple tax deferral strategies utilizing Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031). These include:

  • Tax-deferred UPREIT transactions
  • Re-investment into cash-flowing single-tenant net leased properties

Both of these strategies involve continued, long-term ownership in real estate assets, but can provide for steady or growing cash-flow, geographic and credit diversification, and professional investment management.

Working in conjunction with your CPA or tax professional, our team will help you determine the best strategy for the sale of your healthcare facility.