Renewa LogoSell Wind
Interest and Inflation
Volatile interest rates and rising inflation can affect the value of your lease income over time. By receiving a large cash payment now instead smaller payments over several years, you’re in control and can use investment strategies to counter specific interest and inflation rate environments.
Flexibility
Renewa is open to buying all or a portion of your asset. That means you can get a combination of a large lump sum while keeping some of your regular lease payments.
Estate Planning Made Easy
You can more easily make cash distributions during your lifetime, allowing loved ones to enjoy the benefits sooner rather than later – and with less red tape.
Reduce Your Income Taxes
Rental or royalty income is taxed at your ordinary income tax rate (currently up to 37%). By selling your land, rental or royalty income now, your proceeds can potentially be treated as long-term capital gains and taxed at a current rate of 15-20%, based on income level. The transaction may be eligible for a 1031 tax-free exchange, as well. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Disclaimer on Tax AdviceReinvestment Opportunities
Many of the landowners we work with are uncomfortable with having so much land and money tied up in one type of investment and industry. There are too many “what ifs” when it comes to renewable energy. Having a lump sum upfront allows you to diversify your investments into different asset classes, many with higher rates of return than your remaining lease payments.
Simplify Estate Planning
Settling wills and estates can be a long and frustrating process for your heirs. Cash assets are simpler to distribute. You can more easily make cash distributions during your lifetime, allowing loved ones to enjoy the benefits sooner rather than later – and with less red tape.
Risk Mitigation
In most wind leases, there is no guarantee how long your rent payments will last. Often the operator has the right to shut down the project at any time and end your rental or royalty payments. Taking the lump sum cash payment up front eliminates that risk.