If you plan to sell a substantially appreciated asset, property or business, you can save money with what’s called a two-year installment sale. Basically, it’s a double-sale strategy to create a taxation timing gap between when the asset sale proceeds are received and when they’re taxed.
See Also: The Most-Overlooked Tax Deductions
Here’s how it works: You can sell the asset to your children or to a separate trust (sometimes referred to as a “deferred sale trust”) on a long-term installment sale. That way, your children or other beneficiaries can receive the full value and enjoyment of the property before the gain is recognized and subject to taxation. At that point, the property can be sold to a third-party buyer for cash.
For example, let’s say you own Blackacre, a parcel of land that you originally purchased for $200,000. Today it has a fair market value of $1 million. You want it to benefit your children, so you sell it to a non grantor trust in exchange for a 10-year installment note. This non grantor trust, which is a taxable entity, receives a stepped-up basis of $1 million for the property. You receive two payments of $100,000 from the non grantor trust and recognize a gain of $80,000 on each payment. But after the second payment is made, the trust sells the property to a third party—an unrelated taxpayer—for cash. Assuming that the value of Blackacre has increased by $100,000 between the two sale dates, the value is now $1.1 million. The non grantor trust recognizes a gain of $100,000 on the sale. Yet the family receives the entire $1.1 million of value while paying tax on only $300,000 of the $900,000 gain. Yes, the trust will continue to pay off the note over the next e ight years. You recognize any gains and pay the taxes over that eight-year period. But this provides a significant timing difference. Plus, you may also be able to reduce your taxable income and pay taxes from a lower tax bracket in future years.
5 Best Medical Stocks For 2017: NRG Energy Inc.(NRG)
NRG Energy, Inc., together with its subsidiaries, operates as a wholesale power generation company. The company engages in the ownership, development, construction, and operation of power generation facilities. It also involves in the transacting in and trading of fuel and transportation services; the trading of energy, capacity, and related products in the United States and internationally; and the supply of electricity, energy services, and cleaner energy and carbon offset products to retail electricity customers in deregulated markets. The company operates natural gas- fired, coal- fired, oil-fired, nuclear, solar, and wind power plants. As of December 31, 2010, it had power generation portfolio of 193 operating fossil fuel and nuclear generation units with an aggregate generation capacity of approximately 24,570 megawatt (MW), as well as ownership interests in renewable facilities with an aggregate generation capacity of 470 MW. The company portfolio also includes appr oximately 24,035 MW generation capacity in the United States, and 1,005 MW generation capacity in Australia and Germany. In addition, it has a district energy business with steam and chilled water capacity of approximately 1,140 megawatts thermal equivalent. NRG Energy, Inc. was founded in 1989 and is headquartered in Princeton, New Jersey.
- [By Lisa Levin]
On Thursday, utilities shares rose by 0.02 percent. Top gainers in the sector included Westar Energy Inc (NYSE: WR), Westar Energy Inc (NYSE: AT), and NRG Energy Inc (NYSE: NRG).
- [By Lisa Levin]
In trading on Friday, utilities shares rose by just 0.1 percent. Meanwhile, top losers in the sector included NRG Energy Inc (NYSE: NRG), down 4 percent, and Calpine Corporation (NYSE: CPN), down 7 percent.
- [By Stoyan Bojinov]
Deutsche Bank announced on Monday that is was maintaining a “Hold” rating on the New Jersey-based electric utility company NRG Energy Inc. (NRG), but went on to lower its price target for the company.
Greg Poole, an analyst with the firm, commented, “NRG has several diverse businesses – generation, retail, solar, clean energy technologies, and now a separate MLP-like income vehicle for contracted assets. This helps to diversify away from the seemingly perennially challenged merchant generation business, but it also results in an increasingly complex story that may pose a challenge for investors and valuation.” As such, Deutsche Bank announced it was lowering its price target from $27 to $26 a share.
NRG Energy Inc. shares crept higher, gaining 1.11% on the day. The stock is up almost 15% YTD.
5 Best Medical Stocks For 2017: Range Resources Corporation(RRC)
Range Resources Corporation, an independent natural gas company, engages in the acquisition, exploration, and development of natural gas properties primarily in the Appalachian and southwestern regions of the United States. The company?s Appalachian region drilling and producing activities include tight-gas, shale, coal bed methane, and conventional natural gas and oil production in Pennsylvania, Virginia, Ohio, and West Virginia. It owns 4,969 net producing wells, approximately 2,750 miles of gas gathering lines, and approximately 1.8 million gross acres under lease. The company?s Southwestern drilling and producing activities cover the Barnett Shale of North Texas, the Permian Basin of West Texas and eastern New Mexico, the East Texas Basin, the Texas Panhandle, and the Anadarko Basin of Western Oklahoma. It owns 1,954 net producing wells, as well as approximately 886,000 gross acres under lease. As of December 31, 2010, Range Resources Corporation had had 4.4 Tcfe of pr oved reserves. It sells gas to utilities, marketing companies, and industrial users. The company was formerly known as Lomak Petroleum, Inc. and changed its name to Range Resources Corporation in 1998. Range Resources Corporation was founded in 1975 and is headquartered in Fort Worth, Texas.
- [By Wayne Duggan]
Bernstein maintains Outperform ratings on the following oil stocks:
Apache Corporation (NYSE: APA) Anadarko Petroleum Corporation (NYSE: APC) Cobalt International Energy, Inc. (NYSE: CIE) Cabot Oil & Gas Corporation (NYSE: COG) ConocoPhillips (NYSE: COP) Devon Energy Corp (NYSE: DVN) EOG Resources Inc (NYSE: EOG) Range Resources Corp. (NYSE: RRC) Southwestern Energy Company (NYSE: SWN)
GMP analyst Bob Bakanauskas went long E&Ps back on February 3. He predicts that the oil market will transition from oversupply to undersupply in 2017. From that point forward, the world will once again require shale production growth.
- [By Ben Levisohn]
Barclays analyst Thomas Driscoll and team explain why they cut Range Resources (RRC) to Underweight from Equal Weight:
Range shares have performed very well this year despite severe financial challenges. While the company has a deep inventory of attractive drilling locations, it faces cost structure challenges and it has a levered balance sheet. We are lowering our price target 11% to $24 and downgrading our rating to Underweight.
Cash flow before hedges – is negative at strip prices. Range is well hedged for 16, but we estimate 16 cash flow would be negative $(100) million at strip prices if we were to exclude greater than $400 mm of potential 16 hedge gains. Investors should be cautious when estimates include significant hedge gains.
Ranges multiple may be pressured as growth slows. Range grew 20-25%/year over the past 3 years and the shares enjoy a 40-45% premium multiple. We forecast 2% growth this year and 8% next year, growth rates that benefit from our above strip gas forecast (we are using $2.50 vs. a strip average price of +/-$2.00) and ~$285 mm of hedge gains. Should the premium multiple disappear, the shares could fall nearly 50% to $17 per share. Our current price target assumes the company will continue to trade at a sharp premium as investors await a gas-price rebound.
Shares of Range Resources have 4.1% to $29.91 at 11:54 a.m. today, leaving 20% of downside toDriscoll’s target price. The Energy Select Sector SPDR ETF (XLE) has dipped just 0.4% to $61.26.
Top Casino Stocks To Watch Right Now: Apollo Global Management, LLC(APO)
Apollo Global Management, LLC is a publicly owned investment manager. It primarily provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors. The firm manages client focused portfolios. It launches and manages hedge funds and mutual funds for its clients. The firm also manages real estate funds and private equity funds for its clients. The firm invests in the fixed income and alternative investment markets across the globe. Its alternative investments include investment in private equity and real estate markets. The firm’s private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments in real estate, corporate partner buyouts, distressed asset, corporate carve-outs, turnaround, corporate restructuring, special situation, acquisition, and industry consolidation transactions. Its fixed income investments include income -oriented senior loan and bond, structured credit, opportunistic credit, non-performing loans and value oriented fixed income securities. The firm seeks to invest in chemicals; commodities; consumer and retail; oil and gas, metals, mining, agriculture, commodities, distribution and transportation; financial and business services; manufacturing and industrial; media distribution, cable, entertainment, and leisure; natural resources, energy, packaging and materials; and satellite and wireless. It seeks to invest in companies based in across North America with a focus on United States, and Europe. The firm also makes investments outside North America, primarily in Western Europe and Asia. The firm employs a combination of contrarian, value, and distressed strategies to make its investments. It conducts an in-house research to create its investment portfolio. The firm seeks to acquire minority positions in its portfolio companies. The firm seeks to make investments in the range of $200 million and $1.5 billion. Apollo Global Management, ! LLC was founded in 1990 and is headquartered in New York, New York with additional offices in Los Angeles, California; Purchase, New York; Houston, Texas; London, United Kingdom; Frankfurt, Germany; Luxembourg, Luxembourg; Hong Kong, Hong Kong; Singapore, Singapore; and Mumbai, India.
- [By Chad Tracy]
In 2008, Apollo Global Management (NYSE: APO) co-founder Joshua Harris was on a losing streak.
The firm's $430 million investment in big-box retailer Linens N' Things went south when the company filed for bankruptcy.
5 Best Medical Stocks For 2017: Expeditors International of Washington, Inc.(EXPD)
Expeditors International of Washington, Inc., incorporated on May 29, 1979, is a logistics company. The Company is a third party logistics provider, and purchases cargo space from carriers, including airlines and ocean shipping lines on a volume basis and resells that space to its customers. The Company provides a range of customer solutions, such as order management, time-definite transportation, warehousing and distribution, temperature-controlled transit, cargo insurance and customized logistics solutions. In addition, the Company’s Project Cargo unit handles special project shipments that move through a single method or combination of air, ocean, and/or ground transportation. The Company’s primary services include airfreight services, ocean freight and ocean services, and customs brokerage and other services. The Company is managed along five geographic areas: the Americas; North Asia; South Asia; Europe, and the Middle East, Africa and India.
Airfreight S ervices
The Company provides airfreight services and acts either as a freight consolidator or as an agent for the airline, which carries the shipment. As a freight consolidator, the Company purchases cargo space from airlines on a volume basis and resells that space to its customers. As a freight forwarder, the Company receives and forwards individual, unconsolidated shipments as the agent of the airline that carries the shipment.
The Company issues a House Airway Bill (HAWB) to its customers as the contract of carriage and separately receives a Master Airway Bill from the airline when the freight is physically tendered. When moving shipments between points where the nature or volume of business does not facilitate consolidation, it receives and forwards individual shipments as the agent of the airline, which carries the shipment. Whether acting as a consolidator or agent, the Company offers its customers knowledge of optimum routing, familiarity wi th local business practices, knowledge of export and import ! documentation and procedures, the ability to arrange for ancillary services, and assistance with space availability in periods of peak demand.
In its airfreight operations, the Company receives shipments from its customers, determines the routing, consolidates shipments bound for a particular airport distribution point, and selects the airline for transportation to the distribution point. At the distribution point, the Company or its agent arranges for the consolidated lot to be broken down into its component shipments and for the transportation of the individual shipments to their final destinations.
Ocean Freight and Ocean Services
The Company operates Expeditors International Ocean, Inc. (EIO), an Ocean Transportation Intermediary, also known as Non-Vessel Operating Common Carrier (NVOCC), which specializes in ocean freight services in trade lanes across the world. EIO also provides service, on a smaller scale, to and from any locati on where the Company has an office or agent. Its ocean freight services consist of three basic services: ocean freight consolidation (EIO), direct ocean forwarding and order management.
The Company’s ocean freight consolidation is an NVOCC, EIO contracts with ocean shipping lines to obtain transportation for a fixed number of containers between various points. EIO provides full container load services to companies that need flexibility and access to vessel capacity that they may not necessarily achieve by dealing directly with the shipping lines. Additionally, EIO supports customers that prefer to supplement their carrier strategy with an NVOCC. The Company issues a House Ocean Bill (HOBL) or a House Seaway Bill to customers as the contract of carriage and receives a separate Master Ocean Bill of Lading (MOBL) when freight is physically tendered. It offers ancillary services, such as the preparation of shipping and customs documentation, packing, crating, insura nce services, negotiation of letters of credit, and the prep! aration o! f documentation to comply with local export laws.
When the customer contracts directly with the steamship line, the Company acts as an agent of the customer and derives its revenues from commissions paid by the steamship line and handling fees paid by the customer. In such arrangements, the Company does not issue an HOBL or House Seaway Bill. Rather, the carrier issues a MOBL directly to the customer who employs the Company to create documentation, manage shipment information and arrange various services to facilitate the shipment of goods. The MOBL shows the customer as the shipper.
Order management provides services that manage origin consolidation, supplier performance, carrier allocation, carrier performance, container management, document management and destination management through a Web-based application. Customers have the ability to monitor and report against near real-time status of purchase orders from the date of creation through final delivery. Order management is available for various modes of transportation, including ocean, air, truck and rail.
Customs Brokerage and Other Services
The Company assists importers to clear shipments through customs by preparing required documentation, calculating and providing for payment of duties and other taxes on behalf of the importer, arranging for any required inspections by Governmental agencies, and arranging for delivery. The Company provides customs clearance services in connection with shipments it handles in its transportation services. The Company also provides other services at destination, such as warehousing and distribution, time-definite transportation services (Transcon) and consulting services. The Company’s distribution and warehousing services include distribution center management, inventory management, order fulfillment, returns programs and order level services. Transcon is a multi-modal product, which offers time-definit e, intra-continental transportation solutions, often by grou! nd and ot! her specialty handling services.
- [By Monica Gerson]
Benzinga's newsdesk monitors options activity to notice unusual patterns. These large volume (and often out of the money) trades were initially published intraday in Benzinga Professional . These trades were placed during Friday's regular session.
PACCAR Inc (NASDAQ: PCAR) Aug16 52.5 Puts: 10000 @ ASK $1.70: 10k traded vs 335 OI: Earnings 7/26 $54.94 Ref Regeneron Pharmaceuticals Inc (NASDAQ: REGN) Jul16 345 Puts: 949 @ ASK $8.70: 1003 traded vs 55 OI: Earnings 8/2 $360.20 Ref NVIDIA Corporation (NASDAQ: NVDA) Fri 6/24 47.0 Puts (Wkly) Sweep: 689 @ ASK $1.12: 3758 traded vs 136 OI: Earnings 8/4 $46.69 Ref Medivation Inc (NASDAQ: MDVN) Sep16 55.0 Puts: 4000 @ Above Ask! $3.40: 5303 traded vs 716 OI: Earnings 8/4 $59.44 Ref Expeditors International of Washington (NASDAQ: EXPD) Aug16 47.0 Puts Sweep: 950 @ ASK $1.35: 973 traded vs 381 OI: Earnings 8/2 $48.15 Ref
Posted-In: Huge Put PurchasesNews Options Markets
5 Best Medical Stocks For 2017: Graham Corporation(GHM)
Graham Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of heat transfer and vacuum equipment for the chemical, petrochemical, refining, energy, defense, and electric power generating industries worldwide. The company offers heat transfer equipment, including surface condensers, Heliflows, water heaters, and various types of heat exchangers; and vacuum equipment consisting of steam jet ejector vacuum systems and liquid ring vacuum pumps. It also services and sells spare parts for its equipment; and supplies components used inside reactor vessels and outside containment vessels of nuclear power facilities. The company sells its products directly, as well as through independent sales representatives. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.
- [By Monica Gerson]
Graham Corporation (NYSE: GHM) is expected to report its quarterly earnings at $0.12 per share on revenue of $23.54 million.
Heico Corp (NYSE: HEI) is estimated to post its quarterly earnings at $0.54 per share.