This is our most common structure.  In a fee simple transaction, you sell your entire property, including your lease.  Some of the reasons people decide to enter into a fee simple transaction are:

• It typically results in the highest purchase price since we are acquiring the land in addition to the lease
• Solar leases typically encumber the entire property for up to 40 years.  Many people do not plan to own the land for 40 years.  In these cases, it often makes sense to get the maximum price for your land now
• Fee simple transactions are eligible for 1031 exchange.  This allows you to defer the capital gains taxes if you reinvest the proceeds and meet certain criteria*

* Renewable Land does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.