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gerdau sells texas wire mill - recycling today

Brazil-based Gerdau S.A. has agreed to sell its Beaumont, Texas, wire rod mill to Optimus Steel LLC for $92.5 million. The sale also includes two downstream facilities," according to a statement released by Gerdau.

Pending further approvals and regulatory clearances the sale is expected to close before the end of 2018. It is the second sale of U.S. steelmaking assets by Gerdau in the first quarter of 2018. In early January it announced the sale of four EAF mills and several downstream facilities to Texas-based Commercial Metals Co. (CMC).

Optimus Steel LLC did not contribute comments to the Gerdau statement, although a report from American Metal Market indicates the newly formed company is affiliated in some way with Florida-based Wire Mesh Corp. (WMC). According to the Gerdau statement, the downstream facilities sold to Optimus are known as Beaumont Wire Products and Carrollton Wire Products.

Gustavo Werneck, CEO of Gerdau, says the company remains committed to the North American market. The strategy in North America, a key market for us, is to improve our profitability, focus on more value-added products and better serve our customers, positioning Gerdau as one of the most innovative steel companies worldwide. We remain committed to strengthening our position in the US in the next years and we see a great growth potential in the markets that Gerdau will continue to operate.

German equipment manufacturer Strautmann Umwelttechnik GmbHis marketing its PP 1208 and PP 1208 Plus70 vertical balers models as ideal for the handling of recyclable materials including cardboard, plastic film and foam and resins including polyethylene terephthalate (PET).

The balers have been at work for more than 20 years in the food retailing, industrial, wholesale and warehouse sectors, Strautmann indicates, and they optimize the waste management logistics of many companies on a daily basis.

The small footprint of the PP 1208 and PP 1208 Plus70 means they can be used almost anywhere, according to the company. Placement directly at the location of the material saves time and creates time for the core business, Strautmann states in a news release, adding, Employees do not have to go outside in wind and weather to empty the recyclables into a [compactor].

The Max-AI AQC (Autonomous Quality Control) from Bulk Handling Systems (BHS), Eugene, Oregon, has been selected for recognition as a part of the Washington-based Association of Plastic Recyclers (APRs) 2018 Plastics Recycling Showcase.

The Max-AI AQC was launched in 2017 by BHS and Nashville, Tennessee-based National Recovery Technologies(NRT). The selection was announced during the Feb. 19 APR Technical Forum, held in conjunction with the Plastics Recycling Conference in Nashville. NRT President Matthias Erdmannsdoerfer presented at the forum, and attendees visited NRTs headquarters to see live demonstrations of the Max-AI AQC earlier in the day.

We are honored to have been selected to participate in the APRs Plastics Recycling Showcase, Erdmannsdoerfer says. With more than 40 orders on four continents, the Max-AI AQC has generated tremendous industry excitement and acceptance, and were really just getting started. We believe this technology is a breakthrough that will change the way the world recycles and permeate throughout the entire industrial recycling process. As longstanding members of the APR, we appreciate the associations commitment to innovation and leadership in the development of the plastics recycling industry and its long-term growth.

Max-AI technology is an artificial intelligence that identifies recyclables and other items for recovery. Max-AI employs multilayered neural networks and a vision system to see and identify objects similar to the way a person does, BHS says. The groundbreaking technology is driving improvements in material recovery facility (MRF) and plastics recovery facility (PRF) design, operational efficiency, recovery and purity, system optimization and maintenance. The Max-AI AQC combines this technology with a robotic sorter to pick and place up to six different material types in one location.

According to BHS and NRT, Max-AI allows MRFs and PRFs to run longer with lower operational expenses, produce more products with increased purity, capture accurate data for reporting and dynamic optimization and adapt over time to the changing material mix without major capital expenses.

The APR recognizes technology that has a positive impact on the ability of a package or container to be recycled. The APR says it promotes the development of the plastics recycling industry by providing leadership for long-term industry growth and vitality.

We recognize that innovation drives the growth of recycling and is essential to the success of the plastic recycling industry, the APR says. The Showcase identifies, highlights and commends the industrys leading innovations developed by APR member companies that support the growth of plastics recycling. The selections are intended to illustrate what others can do to advance plastics recycling.

Shanghai-based Roy Tech Environ Inc. has announced plans to open a plastics recycling facility in Grant, Alabama. The decision to site the plant there was made after the company decided in September 2017 that it needed to build production capacity in the United States to guarantee its factories in China would have an ample amount of recycled plastic.

Matt Arnold, president of the Marshall County Economic Development Council, says Roy Tech Environ has moved quickly to find a location and has secured a building. Arnold says the company will install equipment to allow the facility to grind and shred primarily postindustrial plastic scrap.

Lily Zhang, CEO of Roy Tech Environ, says in phase one the company will install grinders and shredders for five production lines. In phase two it will install pelletizing equipment. The main grades the company will handle include high-density polyethylene (HDPE), polypropylene (PP) and polycarbonate (PC) that will come primarily from the companys existing customers.

Arnold says the facility will have several stages of development and should be operational by the summer of 2018. Roy Tech has set a goal of processing around 20,000 metric tons by the end of its first year of operation in Alabama.

Roy Tech Environ was formed around 20 years ago in Shanghai by CEO Lily Zhang and her brother. In a written statement, Zhang says three years ago, she realized the company should start sourcing plastic scrap directly from the United States because of the high quality of the material and ample quantity of the material available. The company has been shipping plastic scrap directly to its production plant in Shanghai.

The move to open a plastics recycling facility comes on the heels of China cracking down on baled plastic scrap being imported into the country. With quality specifications tightening, making it extremely difficult to ship unprocessed plastic scrap into China, the company decided to open a processing plant in the United States to guarantee its operations in Asia had enough material to meet their needs.

Norway-based Geminorhas announced a renewed contract to deliver 55,000 metric tons of solid recovered fuel (SRF) per year to cement producer Alborg Portlands operations in Alborg, Denmark. Alborg will use the SRF to power its cement kiln.

Geminor will source roughly 30,000 metric tons of SRF from its operations in the United Kingdom, while the remaining fuel will be supplied by Geminor from other nations in Northern Europe. The material will be stored at Geminors warehouse at the Alborg Port.

Our contact with Alborg Portland marks an exciting start to the new year, says Tim Andersen, country manager at Geminor Denmark. As one of Europes foremost cement manufacturers, the business makes a fantastic addition to our growing client portfolio. A key benefit of the relationship is Geminors warehouse facility at the port of Alborg. Located just a stones throw away from the Alborg Portland site, were able to transport bales of SRF direct from ship to warehouse in a minimal amount of time.

In related news, Geminor also announced it has opened a multimodal terminal at the Port of Fredrikstad in Norway. The terminal will be used for handling baled refuse-derived fuel (RDF) shipped from the U.K. to Norway.

The terminal will handle more than 120,000 metric tons of feedstock every year, including 20,000 from the nearby port of Brevik, Norway. The solid fuel will be distributed to waste recovery facilities in Norway, including Bio-El, Energos Gasification Plant at Borregrd and Sarpsborg Avfalls Energi AS.

Launching an all-new multimodal logistics facility at the Port of Fredrikstad represents yet another impressive milestone for Geminor, says Oliver Caunce, Geminor UKs business development manager. The facility will help us further momentum across Norway, as well as support energy from waste facilities in times of fluctuating fuel requirements.

understanding depreciation recapture when you sell a rental property - millcreek commercial | discover freedom

If you are looking to sell a property in the future and would like to exchange headaches for happiness, visit our websitewww.millcreekcommercial.com. To talk directly to a 1031 exchange expert today give us a call: 801.899.1943

If youre an experienced rental property owner who benefited from depreciation, be aware that the IRS might want some of that money back when you sell.Depreciation is one of the most significant and most advantageous deductions for real estate investors because it reduces taxable income but doesnt reduce your cash flowa magical tax deduction. The IRS allows real estate investors to depreciate their investment property over a period of time, 27.5 years for residential rental investments saving landlord thousands of dollars in taxes every year.

This is the part of the article where we tell you that we are not professional accountants, CPAs, or attorneys. Any information that you garner from this article should be verified with your accountant or other professionals much smarter than us.

As an investment real estate owner, you and your accountant have likely become very familiar with this deduction. The IRS allows this tax deduction because, in theory, improvements have a useful life span and lose value over time. Take for example, an automobile. The IRS allows a business to depreciate an automobile over seven years. When the company trades that vehicle back into the dealer in three years, it has lost over half of the original value. If the owner has depreciated 40% of the cost on the prior years tax returns, they write off the final 10% when they trade it in. Thus, depreciation makes sense in such a case. However, real estate often (in fact, almost always) increases in value.

IRS tax code allows investors to depreciate the improvements (buildings, etc.) related to real estate. However, if you sell your real estate investment after 20 years and the property has increased in value, the IRS wants their money back and will assess you at a 25% tax rate on the amount you have previously deducted. For many investors who hold their real estate for an extended period, the depreciation recapture tax can be much more onerous than the capital gains tax (15%20%).

At some point, you may decide to sell your rental property. Depreciation will play a role in the amount of taxes youll owe when you sell. Because depreciation expenses lower your cost basis in the property, they ultimately determine your gain or loss when you sell. The IRS will demand that you pay a premium on that portion of your gain.

If you hold the property for at least a year and sell it for a profit, youll pay long-term capital gains taxes. If youre a higher-income taxpayer, you may also be on the hook for a 3.8% net investment income tax NIIT. Additionally, you will likely encounter the devil of all taxesdepreciation recapture.

The IRS remembers all those depreciation deductions, and theyll want some of that money back. Thats what depreciation recapture does. The rate is based on your ordinary income tax rate and is capped at 25%. It applies to the portion of the gain attributable to the depreciation deductions youve already taken. Because the sale of your property likely pushes you into a higher tax bracket for the year of the transaction, it is almost always 25%.

Lets say you purchased a rental property ten years ago for $200,000. You should have written off about $54,540 in depreciation deductions over those ten years. Your adjusted cost basis in this property after the ten years is $95,460 (the original cost basis of $150,000 minus $54,540). If you can sell the property for $280,000, you will recognize a gain of $184,540 ($280,000 minus $95,460).

While it would be nice to pay taxes at the lower capital gains rate on the entire gain, youll pay up to 25% on the part that is tied to depreciation deductions. If you owe the maximum, it would be 25% of $54,540, or $13,635.

The remaining $130,000 is taxed at your regular long-term capital gains tax rate. Assuming youre in the top bracket, that would be $26,000 in capital gains taxes. With just these two taxes, youre looking at $39,635 in taxes. Also, you may owe the NIIT, and your state will likely want a piece of the action as well.

Depreciation recapture can be the most painful stupid tax known to humankind. Tax code requires that the IRS assumes you took the depreciation, even if you did not take the deduction. Therefore, if you have been doing your taxes for years and have not been taking advantage of depreciation when you sell your property, the IRS will assume that you have taken the deduction. They will then assess the tax on what you should have taken even if you never benefited from the deduction.

If you own investment real estate and are looking to sell, youll want to become very familiar with the pending tax liability and potential strategies to defer these taxes. Many investors consider taking advantage of Section 1031 of the IRS tax code. Commonly referred to as a 1031 exchange, this section allows investors to defer paying taxes when they sell investment real estate and reinvest the proceeds from the sale in investment real estate of equal or greater value. Taxes that need to be paid on depreciation recapture, federal capital gains, state taxes, and NIIT are all deferred. Effective use of a 1031 strategy allows investors to create, store, and transfer wealth tax-free. It would be best if you planned in advance to take advantage of this deferment strategy. You should always contact a 1031 exchange specialist before selling your current property.

Millcreek Commercial specializes in 1031 exchange strategies. Exchanging residential rental properties for other rental properties is often a net-zero tradeone set of headaches for another. However, exchanging residential rental properties for high quality, NNN leased commercial real estate can bring the safety, security, and stability your portfolio deserves. Many investors fill the role of landlord. With that title comes several things that contribute to headachestenants moving in and out, fixing toilets, painting walls, replacing carpet, and the list goes on. By exchanging into NNN leased commercial real estate, maintenance, improvements, and property taxes, all headaches are essentially the tenants responsibility. This powerful lease structure creates a true form of passive income.

If you are looking to sell a property in the future and would like to exchange headaches for happiness, visit our websitewww.millcreekcommercial.com. To talk directly to a 1031 exchange expert today give us a call: 801.899.1943

Keep in mind that these examples are overly simplified. Also, rental property tax laws are complicated and change periodically. Unless youre a real estate tax pro, you should work with someone who is.