Walgreen’s Drug Store
Our client was a long time Landlord in NYC who had owned the building he wanted to sell for over 40 years. He had decided to retire and needed to sell the building in order to do so. He spoke with his accountant and found that he would owe over two million dollars in taxes when he sold the building.
This is when he came to us and asked for our help in solving his tax problem and creating an income stream for his retirement. We explained the benefits of doing a 1031 tax deferred exchange and how by structuring the right exchange we could increase his income and either avoid or delay the tax burden for decades.
We combed the market and found a net leased Walgreen’s with 15 years of corporately guaranteed income and no management headaches for him to deal with. The best part of the deal for him was that we doubled his income from the first day of his ownership of the Walgreen’s while completely avoiding paying any taxes on the sale of his old NYC building.
We sold the old building, bought the new Walgreen’s with the sale proceeds and sent all the paperwork in on time to the IRS for his exchange. We had to manage a number of moving parts since the whole deal for both the sale of the old building and the purchase of the new Walgreen’s had to be completed within 180 days from start to finish.
The end result was a very satisfied client who doubled his income, got rid of the headache of managing a building and saved two million dollars in taxes.