Tax basics
Clear is not a contributor's tax adviser. Nothing here is advice about anyone's situation or a statement of how any contribution is taxed. Bring your own CPA: documents are sent to a contributor's advisers. Nothing here is an offer either; see Contributors.
On this page
What happens, mechanically
These are the facts of the structure that a tax adviser will want to know:
- No buyer. The deed goes into a nominee trust, with Clear Properties as its beneficiary, and the contributor receives shares in Clear Properties.
- Nothing is settled in cash. Shares are issued one per dollar of appraised value, and no cash is paid either way to balance the exchange.
- Tax distributions are required. The agreement that governs the shares requires them. The agreement is not public.
How a contribution is taxed
It depends on the contributor's situation: whether tax is due when the property goes in, which tax forms a holder receives, and what happens if the shares are ever sold. Take these questions to your own tax adviser.
The holding period
A contribution is designed to be held. If you plan to trade property every couple of years, this structure is not for you.
What to take to your own adviser
Anything specific to your own situation: your basis, any debt on the property, state rules, depreciation already taken, and what happens on a later sale or on death.