Even if you don’t need cash right now, doesn’t it make sense to know the market value of your lease? If your site meets our criteria, we can provide you with a no-obligation analysis and valuation. 

Oftentimes the sale prices can be considerable, which in turn, may cause a significant tax event to the seller. In many instances, the availability of a tax deferred exchange under Section 1031 of the Internal Revenue Code (IRC). The comprehensive set of tax laws created by the Internal Revenue Service (IRS). This code was enacted as Title 26 of the United States Code by Congress, and is sometimes also referred to as the Internal Revenue Title. The code is organized according to topic, and covers all relevant rules pertaining to income, gift, estate, sales, payroll and excise taxes.Internal Revenue Code Internal Revenue Code can be the key to enabling a sale to take place by minimizing the tax burden to the seller.

A sale of a lessor’s interest in a lease does not constitute a real estate interest. However, a real estate sale can be accomplished by creating, or transferring an existing easement, on which the solar arrays are situated. There is substantial case law providing that easements generally are a real property interest.

There is an active market in the sale of wind farms and turbines. Similar renewable energy assets such as solar farms and arrays should be capable of being exchanged in the same manner as wind farms and turbines. While some of these assets are valued based upon the value of the lease associated with the asset, an owner’s interest in a lease cannot be the subject of a 1031 exchange. Private Letter Ruling 1149003 provides some guidance on how to structure the transfer of the lease value by selling the easement under the leased asset. t.