
We partner with mortgage and real estate experts, wealth managers, financial planners, CPAs, business brokers and other financial, legal and tax professionals.
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Abode Harmony acquires your client's interest in the asset. The transactions are structured such that the recognition of income (and thus capital gains) is legally deferred for 30 years or longer, as confirmed by their tax professional.
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Since the recognition of gain is deferred, the tax payment may be moved out to the future when tax rates or brackets might be lower or when they might have other off-setting deductions to further reduce the tax bite.
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If another buyer has already been identified, Abode Harmony acquires the asset with any representations and warranties flowing directly from your client to that party. Clients with highly-appreciated real estate will benefit the most.
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Liquidity
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Your clients can receive proceeds in the amount of Abode Harmony's acquistion price before funding costs. Therefore, maximum liquidity, after taxes, is a reality for your clients and the recovered windfall can be used towards their short and long-term goals.
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Assets
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We acquire most capital assets with real estate as our main focus including but not limited to the following:
- Agricultural including farms, ranches, timberland and orchards,
- Residential including single-family, apartments, condominums, cooperatives, manufactured, planned unit developments, converted-use,
- Commercial including business, office space, shopping malls, hotels, parking,
- Industrial including warehouses, factories, power plants,
- Special Use including churches, cemeteries, parks and schools,
- Mixed-Use
After becoming a principal, Abode Harmony may assist with designing solutions that meet your customers' needs. A small sample of scenarios demonstrating the benefits of a transaction with Abode Harmony is shown below:
1031 Exchange
Your client can use their tax-free proceeds without having to purchase a like-kind replacement property through the severely-limited 1031 exchange. If they choose to purchase another property, they receive an immediate step-up basis and don't have to wait for a suitable replacement property to be found, as would be required in a tax-deferred exchange.
Estate Planning
After the transfer, your clients' taxable estate is effectively reduced by replacing the asset with a considerably less valuable asset. Also, if applicable, the taxable estate is reduce dollar-for-dollar by the amount of Abode Harmony's acquisition price.
Exit Tax
Your clients may incur a huge tax hit when moving out of a high-tax state, like California or New York. With the recognition of income from the sale delayed for decades, the federal & state taxes on the gains and state transfer taxes may be deferred as verified by your clients' tax advisors.
Long-Term Care
Abode Harmony's acquisition is not a transfer for less than value. Although, the asset is replaced by a considerably less valuable asset, the proceeds, in the amount of Abode Harmony's acquisition price, received are a debt. These facts may help to protect your client under the Medicaid's "lookback provisions" in the event that they need long-term care and want Medicaid assistance to pay for that long-term care.
Debt-Over-Basis
In some transactions, the cash, from closing, doesn't cover the tax costs or even the debt. Proceeds, in the amount of Abode Harmony's acquisition of the asset, allows your client to exit with more cash especially when combined with deferred tax payments.
Charitable Giving
Your clients will receive higher after-tax proceeds when combining the transaction with Abode Harmony with a partial donation of the asset.
Invest Internationally
Clients can transfer their U.S. property to Abode Harmony. Then they can use the optional non-taxable proceeds to invest internationally without having to pay tax on the disposition of the U.S. property in the immediate future.
Coming Soon
** Disclaimer - Abode Harmony and employees do not provide tax, legal and financial advice, and these materials and statements contained herein should not be construed as tax, legal or financial advice. Readers are urged to consult their personal tax advisor or attorney for matters involving taxation and tax planning, financial advisors for matters concerning financial planning and their personal attorney for matters involving trust and estate planning and other legal matters.