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Investment Management

Texas Investment Management

Our goal for asset management at Guaranty's Wealth Management Group is to provide our clients customized investment solutions with high client service levels.  We use asset allocation modeling as an integral component of the investment management process and philosophy. Our management team has developed investment strategies which balance expected return with overall portfolio risk by positioning assets to achieve specific investment goals.

Click here to learn more about our Portfolio Management Process.

What is a 1031 Exchange?

A 1031 Exchange is an income tax deferral technique under the restrictions of Section 1031 of the Internal Revenue Code (“IRC”).  This IRC Section can offer an opportunity for real estate owners to defer the capital gains tax liability associated with the sale of investment or business property. To qualify for 1031 "like kind" property exchange the entire transaction has to be done in accordance to the detailed rules, regulations and compliance issues set forth in the US (IRS) tax code. 
Atlanta, Texas

How does the taxpayer set up an exchange?

The exchange must be set up before the Taxpayer can close on the sale of the Relinquished Property. The Qualified Intermediary prepares an Exchange Agreement and an assignment document to assign the Taxpayer’s rights in the sale contract to the Qualified Intermediary. The Taxpayer and the Qualified Intermediary sign the Exchange Agreement and the assignment document. The Buyer of the Relinquished Property also signs the assignment document. If a Qualified Escrow is being used the Qualified Escrow Agent also signs the Exchange Agreement. The Qualified Intermediary or the Qualified Escrow Agent holds the executed Exchange Agreement. The executed assignment document is delivered to the escrow agent handling the sale of the Relinquished Property. Once the sale escrow agent gets the assignment, and all other terms of the sale are satisfied, the sale escrow can be closed. Upon close of the sale escrow the sale escrow agent transfers all of the Seller’s net proceeds to the Qualified Intermediary or to the Qualified Escrow. 

Click here to learn more about a 1031 Exchange.

Business Entities

A business can be operated in many forms.  Some of the more commonly known forms are: (1) sole proprietorship; (2) limited liability company (LLC); (3) C corporation; (4) S corporation; (5) general partnership; and (6) limited partnership.  A sole proprietorship is not a separate entity and is by far the simplest of these six.  The other five choices do involve the creation of a separate entity, but none is inherently better than another.  Rather, each has different elements that might or might not make it a good fit for your business operations. You should consult with your attorney, accountant and other advisors before choosing one of these business forms.

Below is a list of items to consider when choosing a business form.
  • Income taxation
  • Formation
  • Ongoing operations and cash distributions
  • Non-cash distributions
  • Liquidation/Sale
  • Limited liability
  • Sole Proprietorship
  • Corporation
  • Partnership
  • Limited Liability Company
  • Flexibilty of capital structure
  • Paperwork and administrative cost
  • Formation
  • Maintenance

Planning Strategies

In general, higher risk (e.g. volatility of return) is associated with higher return.  Given this relationship between risk and return, a fundamental step in determining the investment policy for the Portfolio is the determination of an appropriate risk tolerance. 

Click here to learn more about risk profiles and risk tolerance.

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