In a dog eat dog world, it is sometimes shocking to see a situation where all parties benefit. The website 170 Exchange would like to educate more people about a legal way to receive a tax deduction that could be used for philanthropic causes. Here is one example: the Welfont Group is a commercial real estate company that that specializes in acquiring under-utilized or distressed properties. The firm can also connect other commercial real estate companies with non-profit organizations so both can benefit from the 170 Exchange. Approved by the Internal Revenue Code (IRC), the 170 Exchange, also called Bargain Sales, allows immediate tax savings from the disposition of under-utilized commercial assets. The Welfont Group then uses the tax savings as micro loans, distributed through the charity entity called the Mercy Foundation. Thanks to the 170 Exchange, everybody benefits: the commercial real estate firm receives its tax deduction, the non-profit entity gets its source of funding, and the poor and the needy are given the chance to start or expand their small businesses so that they can get out of poverty and improve their quality of life.
Is the 170 Exchange Perfectly Legal?
It is understandable that nobody wants to be seen as a tax cheat. Luckily, the 170 Exchange is perfectly legal. Kelly Philips Erb, staff writer for Forbes magazine explained, “Donating property that has appreciated in value, like stock, can result in a double benefit. Not only can you deduct the fair market value of the property (so long as you have owned it for at least one year), you avoid paying capital gains tax. Normally, appreciated property is subject to capital gains tax at disposition but there is an exception for donations to charitable organizations.” While the issue of the legality of the 170 Exchange is settled, the requirements to execute it smoothly are quite tedious. Gary Keller, author of “The Millionaire Real Estate Investor” confirmed, “It’s a very straightforward procedure, but it takes some planning. This program in the IRS tax code allows you to sell and buy properties without having to declare capital gains or pay those taxes.”
The Welfont Group Takes the Guessing Game out of the 170 Exchange
The Welfont Group strives to match commercial real estate agents with non-profit entities, which is no small task. Robert W. Wood, a contributor of Forbes Magazine reiterated the niche service offering of the Welfont Group. “While you can make a simple swap of one property for another, the odds are slim you will find someone with the exact property you want who wants the exact property you have.” This is why having the guidance of a 170 Exchange expert like the Welfont Group is truly priceless. The company itself also supports philanthropic causes by distributing micro loans through the non-profit group called the Mercy Foundation. The micro loans are usually used to help the poor, many living in Third World countries, to start or expand their small businesses so they can get out of poverty.