Tax Provision Offers Tax-Favorable Opportunities Section 170 of the IRS tax code

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.”

Click to Read Full Article