- IRS Clarifies Reverse Exchange Qualifications
The Internal Revenue Service's recent Revenue Procedure providing a safe harbor for reverse like kind exchanges adds clarity to what has been a hazy situation. In the past, many taxpayers have been hesitant to enter into reverse exchanges due to
- Estate Tax Repeal Affects Property Disposition by Beneficiaries
On June 7, President Bush signed the Economic Growth and Tax Relief Reconciliation Act of 2001, a $1.35 trillion tax cut plan. Among other things, this act provides for a phased in repeal of the estate tax with a full
- IRS Provides Guidance on Using Tenancy-in-Common Interests in 1031 Exchanges
On March 19, the Internal Revenue Service released Revenue Procedure 2002 22, which addresses the use of real property fractional ownership interests as replacement property in Internal Revenue Code Section 1031 tax deferred exchanges. Commercial real estate professionals commonly refer
- Job Creation Act Increases Tax Savings for Commercial Property Owners
In March, Congress passed the Job Creation and Worker Assistance Act of 2002. While the act contains provisions affecting many industries, it may offer commercial real estate property owners and companies specific tax saving benefits. Bonus Depreciation Provision Under the
- Cost-Segregation Solutions
Cost segregation is an accepted Internal Revenue Service method of allocating the purchase price paid for real estate property. Generally, cost segregation enables owners to increase the depreciation deductions from their properties, providing substantial present value benefits by reducing income
- Clarifying Entity Classification Conversions
Two recent Internal Revenue Service rulings on the tax treatment of converting single member limited liability companies into partnerships and vice versa likely will affect the commercial real estate industry because many transactions take place with partnerships and other entities
- Commercial Developers May Gain Basis Allocation Advantage
A recent U.S. Tax Court decision may provide commercial developers with another creative tax planning tool, based upon a long standing basis allocation rule available to residential developers. In a series of judicial decisions dating back to the 1950s, courts
- Creative Planning May Reduce State Taxes
State and local taxes represent an increasing portion of the overall tax cost of any real estate transaction. As more businesses become national and even global, state and local tax planning become more crucial. In early March, the New Jersey
- Cost Segregation Helps Property Owners Maximize Depreciation Deductions
While most property owners are aware of depreciation benefits, few take full advantage of them. It is rare that a building's entire cost is depreciated over the 39 year or 27.5 year life assigned to real property, but when owners
- A PAT Answer
Editor's note The November December 2006 issue of Commercial Investment Real Estate contains the article "A PAT Answer," which discusses private annuity trusts as a tax deferral strategy. After the magazine was printed, the U.S. Treasury Department issued proposed regulation
- Review Tax Changes to Maximize Employee Benefit Plans
In light of changing legislation, commercial real estate companies should review their employee benefits plans. The Economic Growth and Tax Relief Reconciliation Act of 2001 contained numerous changes to fundamental retirement plan rules for small businesses. Effective for plan years
- Review the Fundamentals of Section 1031 Like-Kind Exchanges
Taxpayers planning to sell, purchase, or construct real property should review the possibility of conducting an Internal Revenue Code Section 1031 like kind exchange to defer the incurrence of federal and general state income taxes on the capital gain. To
- 3 Tax-Specific Paths to Liquidity for Real Estate Investors
The 2020 CARES Act, passed amid the initial outbreak of COVID-19, opens doors for real estate investors.
- Navigating Stormy Seas
For most real estate analysts, the beginning perspective for retail real estate market analysis is often a site in search of a user, according to “A Rational Approach to Feasibility Analysis” in The Appraisal Journal. This is consistent with the theory that a user can pay the most to occupy a site since the user can place it into productive use immediately. An astute investor or developer values the property based on what the user can afford to pay to occupy the space.
The Graaskamp Legacy reiterated the Graaskamp courses of action that exist in real estate feasibility, which include the site in search of user, site selection, and an investor looking for an investment property.For years, the Chicago Housing Authority was the poster child for
development gone wrong. Cabrini Green, for example, became a breeding
ground for crime and was far more dangerous than the housing it
replaced. On the bright side, Austin, Texas, shows how good development
planning enhances a city's prosperity enticing more companies and
- Taxing Changes
In the wee hours of Jan. 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 and the tax changes that resulted will drastically alter the way commercial real estate professionals plan for major transactions. Additionally, tax provisions written
- Main Street Win
The recent court decision of South Dakota v. Wayfair is a win for commercial real estate, brick-and-mortar businesses, and state and local governments alike, bringing similar taxes to online and brick-and-mortar transactions.
- A Future for Infrastructure
With potential bipartisan support for infrastructure, could 2021 be the year for a breakthrough in Washington, D.C.?
- Forming a Tax Plan
The real estate industry generally fares well under the 2017 Tax Cuts and Jobs Act, but many new provisions heighten the importance of advance tax planning for real estate investors.
- A Charitable Remainder Trust Case Study
Selling a rental property allowed one CRE professional to establish cash flow via a charitable remainder trust.