- 1031 Details
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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
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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
- Taming Your Taxes
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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
- Big Breaks
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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
- Considering Commercial Property Investments with an IRA
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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
- IRS Clarifies Related-Party Rule in 1031 Exchanges
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Last December, the Internal Revenue Service published Revenue Ruling 2002 83, which clarifies its position on taxpayers buying replacement property from related parties under Internal Revenue Code Section 1031. Due to the considerable confusion about such exchanges, real estate professionals
- Inbound Investments
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In the midst of an unprecedented commercial real estate boom, some investors, particularly those from outside the United States, believe assets currently on the market reflect bargain basement prices. As these opportunities spring up throughout the country, international investors are
- A Taxing Workout?
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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
- Foreign Affairs
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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
- Condemnation Caveats
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The U.S. Supreme Court recently agreed to decide the scope of a local government’s ability to use the power of eminent domain to take private property. Several New London, Conn., residents contend that the city’s condemnation of their homes
- Multi-Asset Mastery
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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
- Plan Now, Save Later
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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
- Tax Nothings Are Something in Like-Kind Exchanges
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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
- Talking Taxes
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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
- Power Savings
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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
- Oil and Gas Options
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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
- Telecommunications Services May Be Good for REITs
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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
- Splitting Heirs
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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
- Trust-Worthy Tips
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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.
- Leveraging LIHTCs
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As the need for affordable housing increases across the country, more com mercial real estate devel opers are partnering with nonprofit companies to leverage access to low income housing tax credits as a source of project financing. Earlier this year
- QI Questions
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The unregulated Section 1031 exchange industry has suffered instances of misappropriated client funds, breaches of fiduciary duty, theft, and qualified intermediary bankruptcy filings. The task of qualifying a QI has become paramount for real estate investors and their advisers. Understanding
- S Corporation Shareholders Benefit From Supreme Court Ruling
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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.
- QER Expenditures May Provide Tax Breaks for Brownfield Redevelopers
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When commercial real estate professionals advise their clients on redeveloping brownfield properties, they should consider the tax implications. The treatment of costs incurred to remediate environmentally damaged sites might affect a project's economic feasibility. Remediation Cost Considerations The time during
- Review the Fundamentals of Section 1031 Like-Kind Exchanges
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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
- Retail Tenants Get Tax Break for Construction Allowances
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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