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Power Savings 

The Energy Policy Act of 2005 contains tax incentives that can benefit owners of both new and retrofitted commercial property. Part of a $14 billion package, these incentives provide new deductions for green properties and improvements placed in service in

Plan Now, Save Later 

At the beginning of each year, company owners and individual practitioners should review their business practices to determine if they are making the most of their tax deduction opportunities. Knowing which travel, meal, entertainment, home office, and education expenses to

Oil and Gas Options 

As commercial real estate prices continue to increase and investors seek new replacement property options to complete tax deferred exchanges, oil and gas investments are gaining more attention as viable alternatives. Internal Revenue Code Section 1031 classifies an investment in

Splitting Heirs 

Strong market fundamentals and low interest rates have opened the world of commercial real estate to a whole new pool of investors. Seeking alternatives to the stock market, many investors have ventured into passive forms of real estate investment such

Talking Taxes 

Though many people associate tax time with April 15, the time to implement your business tax strategy is now, before the calendar year comes to an end. Just as location is the key to real estate, timing is the key

Tax Nothings Are Something in Like-Kind Exchanges 

Creative real estate investors have more options in structuring complex like kind exchanges through a recent Internal Revenue Service (IRS) ruling on "tax nothings," or federally untaxed single member limited liability companies (LLCs) that elect not to be treated as

Trust-Worthy Tips 

Charitable remainder trusts are unique and powerful giving tools with useful applications in commercial real estate. CRTs often are employed to address the three biggest tax hurdles real estate investors face current income tax, capital gains tax, and estate tax.

Telecommunications Services May Be Good for REITs 

The rapid advancement of telecommunications technology has made it necessary for property owners, including real estate investment trusts, to upgrade their properties with voice, video, and data communications systems to help attract new tenants. This trend particularly has been menacing

Multi-Asset Mastery 

Of all the transactions in the tax deferred exchange arena, multi asset exchanges can be the most complicated and technical in nature. These transactions include personal property, which is not like kind with real property. While many clients and investors

5 Tax Tips for Developers and Investors 

In today&rsquo s economy it is essential for commercial real estate professionals to be aware of tax planning opportunities and the potential cash savings available to their companies. The following five tax tips may help real estate owners and developers

The Benefits of Cost-Segregation Studies 

When a commercial property is purchased or constructed, a building asset is created and the dollars are entered into a fixed asset system as 39 or 27.5 year property. Using the straight line method,

Analyzing Local Tax Laws Can Save Property Owners Money 

Property taxes are a major expense for commercial property owners often second only to financing costs. Yet many owners resign themselves to rising property tax expenses, accepting their annual assessments as a cost of doing business. Because property values rise

Are You a Candidate for an IRS Audit? 

Benjamin Franklin is credited with observing, “In this world, nothing is certain but death and taxes.” To whom taxpayers answer in death is a question of debate, but there is no question that U.S. taxpayers must answer to the Internal

Accrual-Basis Taxpayers Lose the Use of Installment-Sales Tax Break 

Congress periodically has provided taxpayers with relief from the burden of current income tax liabilities generated in qualified transactions. Internal Revenue Code Section 1031, which governs like kind exchanges, is a familiar example of such a provision that allows taxpayers

Retail Tenants Get Tax Break for Construction Allowances 

For years, federal income tax law was unclear about how to treat payments that owners or landlords make to tenants for construction allowances to improve leased retail space. Last September, the Internal Revenue Service adopted final regulations on previously created

S Corporation Shareholders Benefit From Supreme Court Ruling 

The U.S. Supreme Court recently ruled in favor of taxpayers in a potential windfall decision for shareholders of S corporations. Many small companies, including real estate related ventures, elect to be treated as S corporations with the Internal Revenue Service.

Tax Squeeze 

The feeble transaction market is pushing commercial real estate professionals to expand their scope to include non transaction services that clients need in today&rsquo s shaky economy. Tax consultation, particularly property valuation protests, is a recession resistant service that is

Taming Your Taxes 

While property taxes are one of the most significant expenses affecting a property's bottom line, many owners don't take advantage of available strategies to reduce them. Especially in a slow economy, market and property specific factors should be considered to

1031 Details 

Internal Revenue Code Section 1031 tax deferred exchanges may look similar to simple property acquisitions in which the buyer uses funds from a previous building sale. However, these transactions entail specific closing details that differ from traditional real estate sales.

Bonus Deductions 

The Jobs and Growth Tax Relief Reconciliation Act of 2003 provides a number of tax breaks and incentives to the commercial real estate industry. One particular benefit is the increased bonus depreciation amount, which creates an even greater tax incentive

Big Breaks 

Last fall President Bush signed into law the American Jobs Creation Act of 2004, which provides additional deductions and reduced tax rates for many qualifying U.S. businesses. The AJCA is the most far reaching tax cut in years and benefits

A Taxing Workout? 

The slumping global economy and stagnant credit markets have taken a toll on nearly all commercial real estate properties. Many assets are struggling to generate sufficient income to meet financing obligations in the current market. As a result, many real

Considering Commercial Property Investments with an IRA 

With today’s fierce competition in the commercial real estate world, it’s important to find a way to distinguish oneself as a professional. Having a specialized knowledge of inventory possibilities and ideas for creatively funding investment projects can set you apart

New Tax Rules Offer REITs More Flexibility 

Significant new federal income tax rules governing real estate investment trusts will allow REITs to compete on a more level playing field. Without being penalized, REITs now may operate and maintain control of companies that provide valuable services to their

Foreign Affairs 

Foreign investment in U.S. real estate is a substantial industry. U.S. properties currently account for 56 percent of foreign investors' overall real estate holdings, and office, industrial, retail, and hotel properties account for about 85 percent of their target