Commercial real estate brokers are assisting property owners in contributing to nonprofit organizations and realizing significant tax benefits in the process through a transaction known as a 170 exchange.  The transaction, according to BARBERMURPHY principal Steve Zuber, SIOR, and broker James Leopold, is a means of assisting sellers in disposing of often tough-to-move assets. Its name reflects Part I, Section 170 of the IRS tax code.

“These are sellers with a significant amount of taxable income who are seeking to take advantage of the tax benefits and help a 501(c)(3) organization in the process,” said Leopold. “Properties that are structurally sound but in need of capital improvements, increased occupancy or that have a limited audience of buyers are often suitable for a 170 exchange.”

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