Methods and investment instruments for performing tax-deferred real estate exchanges
First Claim
1. A method of creating a real estate investment instrument adapted for performing tax-deferred exchanges comprising:
- aggregating real property to form a real estate portfolio;
encumbering the property in the real estate portfolio with a master agreement; and
creating a plurality of deedshares by dividing title in the real estate portfolio into a plurality of tenant-in-common deeds of at least one predetermined denomination, each of the plurality of deedshares subject to a provision in the master agreement for reaggregating the plurality of tenant-in-common deeds after a specified interval.
2 Assignments
0 Petitions
Accused Products
Abstract
Methods and investment instruments for investing in real estate are described wherein a portfolio of investment real estate is divided into a plurality of tenant-in-common deeds of predetermined denominations, and which are subject to a master agreement and master lease to form “deedshares.” Holders of the deedshares receive a guaranteed income stream from the master lease and yearly depreciation, without having to maintain or manage the real estate. The holders of deedshares are subject, under the master agreement, to a mechanism that enables the master tenant to purchase, or arrange for the purchase of the deedshares at fair market value (or some other calculable value) at the end of a specified term. Because the deedshares qualify as interests in investment real estate, they are eligible for tax-deferred treatment under §1031 of the Internal Revenue Code.
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Citations
41 Claims
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1. A method of creating a real estate investment instrument adapted for performing tax-deferred exchanges comprising:
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aggregating real property to form a real estate portfolio;
encumbering the property in the real estate portfolio with a master agreement; and
creating a plurality of deedshares by dividing title in the real estate portfolio into a plurality of tenant-in-common deeds of at least one predetermined denomination, each of the plurality of deedshares subject to a provision in the master agreement for reaggregating the plurality of tenant-in-common deeds after a specified interval. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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11. A method of performing a tax-deferred exchange of investment real estate under §
- 1031 of the Internal Revenue Code comprising;
transferring a first interest in investment real estate having a first value and being subject to a first debt from an exchanger to a third party;
using the third party to transfer title to the first interest in investment real estate to a buyer in exchange for money, proceeds of the transfer of the title to the first interest being held by the third party;
identifying deedshares having a second value equal to or greater than the first value and subject to a second debt equal to or greater than the first debt as a replacement property within a specified number of days of transferring title to the first interest in investment real estate, the deedshares comprising an undivided tenant-in-common interest in investment real estate that is subject to a master agreement including a provision reaggregating title to the investment real estate represented by the deedshares at a specified time;
closing the sale of the deedshares within a second specified number of days of transferring title to the first interest in investment real estate; and
transferring the deedshares and the second debt from the third party to the exchanger. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18, 19, 20, 21)
- 1031 of the Internal Revenue Code comprising;
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22. A method of creating a real estate investment instrument adapted for performing tax-deferred exchanges comprising:
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acquiring real property;
encumbering the real property with a master agreement; and
creating a plurality of deedshares by dividing title in the real property into a plurality of tenant-in-common deeds of at least one predetermined denomination, each of the plurality of deedshares subject to a provision for reaggregating the plurality of tenant-in-common deeds after a specified interval. - View Dependent Claims (23, 24, 25, 26, 27, 28, 29, 30, 31)
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32. A method of creating a real estate investment instrument adapted for performing tax-deferred exchanges comprising:
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acquiring real property;
encumbering the real property with a master agreement; and
using a computer to generate a plurality of deedshares by generating a plurality of tenant-in-common deeds of at least one predetermined denomination that divide title in the real property into a plurality of tenant-in-common interests, each of the plurality of tenant-in-common deeds being subject to a provision in the master agreement for reaggregating the plurality of tenant-in-common deeds after a specified interval. - View Dependent Claims (33, 34, 35, 36, 37, 38, 39, 40, 41)
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Specification