Significant benefits for FEC income rehab-rework-redevelopment properties

Reduce Debt while Maintaining Income Goals

Rehabilitated - reworked - updated - redeveloped & modernized for efficient income & accelerated gain properties

1031FEC model strong points reduce owner risk and management.

Comprehensive management with active participation tax advantages §469. Working interest and passive investment:   If one owns a working interest in any oil or gas property, either directly or through an entity that doesn't limit the taxpayer's liability with respect to the interest, it is non-passive activity, regardless of the taxpayer's participation.

Real estate local recorded legal description assignment plus Texas Railroad Commission

Properties can have CPA and/or Operator experienced management in place

Improvement production income goal 15%-25% simple annual (potential larger returns)

Can be ong term asset with income for family generations if preferred.  can sell as wish or be a long term hold asset. Qualifies for step up basis for generational asset hold.

Consistent production harvest flow goal current on going production 24/7 365 days a year

Income has 15%+ depletion allowance or potential principal reduction tax advantage

Financial & Production Reports;  Quarterly income, production and rehab reports

Individual Retirement Account (IRA)/Roth IRA and Family Office qualified - Increase Family wealth

Some projects shorter term ownership (three-four year goal) with asset appreciation profit; integrate Estate & Financial Plans

Increase returns - reduce current and future income taxes while in rehab-redevelopment hold-ownership

Tax deferral - defer or eliminate capital gain and recapture of depreciation tax;

See example at 1LessTax-Page3

Internal Revenue Service Code (IRC) §1031, §1033, §721, §179 & §469 qualified

Pay No or Less Tax - can replace a 1031exchange without IRS time limit, debt or $ limits; gain-recapture significance. Create cash for new depreciation.

Keep basis $ verses 1031 Exchange; Can cover Gain and/or Recapture Proceeds with purchase amount without basis or debt

Pay No or Less Tax - can roll replacement gain into a 1031 exchange or replace with new rehab-rework project; save lowering tax bracket

Real Estate owner & CPA determine entity advantage after initial in year ownership (LLC, joint venture (JV) or other)

$25k to $100K minimum field real estate rehab projects entry can be available at times.

Other projects: $1M minimum - Current field rehab project $6M; Hold for three-four years then divest; please inquire. Other field projects to $50M+ with significant ownership required for most properties

Projects generally have goal of less than 10 qualified and familiar owners vested in one real estate field

Purchase qualification of $300k annual income or less residence value net worth total $1M

Financial advisors recommend purchase maximum of 30% of net worth unless experienced with asset

Please Note: Projects can close anytime with maximum participants, members and/or joint venture associates. Recommend projects owner have experienced personal CPA/tax advisor for maximum tax advantages.

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