(UBIT) Unrelated Business Income Tax.  This is usually not a concern of Non-Profits but it can be an issue for some organizations.  If your organization is operating as a not-for-profit, you could be liable for paying taxes should you decide to sell your Cell Site or Cell Tower Lease.

Many Cell Site Leaseholders want to know if their transaction qualifies for Capital Gains treatment (http://www.irs.gov/newsroom/article/0,,id=106799,00.html).  The sales representatives from the Cell Phone Company or Finance Company will always tell you what you want to hear.  They have almost always never consulted an Accountant or Tax Advisor.    We do not give Tax or Legal advice but we can point you in the right direction based upon our experiences dealing with these issues.  We can also answer questions for your Attorney or CPA.

Some of our clients want to do a 1031 like-kind exchange (http://www.irs.gov/businesses/small/industries/article/0,,id=98491,00.html).  There are certain criteria and filings that must be completed before your transaction.  We can help you avoid making a costly error that could prevent you from taking advantage of this tax deferring filing.

Please contact us before you enter any new Cell Tower Lease or Cell Site Lease Agreement.