Real Estate Advisor
Showing 113–128 of 303 results
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Renting property to your business could backfire on your tax liability
September / October 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 437
Abstract: If a taxpayer owns both property and a business, it just makes sense to lease the property to the business, right? Not always. This article highlights how this approach could bring on some dire tax consequences.
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IRS makes major change to tangible property regulations
September / October 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 620
Abstract: The IRS’s 2013 release of its tangible property regulations explained how to distinguish between immediately deductible business expenses and capital expenditures that must be recovered over time through depreciation. The rules included a “de minimis” safe harbor that allows taxpayers to avoid capitalization of certain expenditures, thereby reducing their current-year taxable income. But the safe harbor imposed some restrictions that limited its value. This article summarizes IRS rule amendments that should allow more small businesses to immediately deduct more costs.
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Don’t get carved up – Dealing with nonrecourse loan carveouts
September / October 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 617
Abstract: Nonrecourse loans draw many borrowers because the arrangements can shield them from personal liability. But that’s not always the case. If borrowers violate “carveouts” in the loan document, they may be left with full liability. This article explains how to use negotiations to handle nonrecourse loan carveouts and to minimize personal liability.
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Demolition and your tax basis: What you need to know
September / October 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 799
Abstract: With the commercial real estate market on the upswing in many parts of the country, investors and developers are again turning to properties with older buildings on them for development opportunities. IRC Section 280B and changes in the final tangible property regulations affect how to preserve depreciation deductions. This article highlights what investors and developers need to know before demolishing a newly purchased building. A sidebar looks at the tax benefits of partial dispositions of property.
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The “Internet of Things” is changing the real estate industry
July / August 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 490
Abstract: The “Internet of Things” generally refers to the networking of physical objects — such as mobile devices, vehicles and buildings — embedded with electronics, software, sensors and Internet connectivity to collect, exchange and apply data. This article looks into how the Internet of Things is changing commercial and residential real estate.
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When a bargain isn’t a bargain – Factors to consider when purchasing property
July / August 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 624
Abstract: Although today’s real estate market has improved, one can still find investment properties at bargain prices. But, as with any real estate investment, that price may be too good to be true. This article discusses important factors to consider beyond purchase price.
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Time to pay – Former shareholders liable in land sale
July / August 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 542
Abstract: The U.S. Tax Court has ruled that shareholders in a C corporation who had transferred all of the corporation’s cash to a third party, without paying corporate taxes on a land sale, were liable for the unpaid taxes. That may sound like an entirely negative result. But, as this article explains, applicable state law mitigated the severity of their liability. Stuart v. Commissioner, 144 T.C. No. 12 (2015)
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How do you account for that? A look at the new accounting rules for leases
July / August 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 830
Abstract: Earlier this year, the FASB released its much-anticipated update on the proper treatment of leases under U.S. GAAP. The revised standard — known as Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) — will apply to all organizations that lease assets such as real estate, vehicles, and construction and manufacturing equipment. This article explains what both lessees and lessors should know about the new rules. A sidebar looks at how the revised standard could affect real estate lease negotiations.
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The real estate professional exception – Why qualifying for it can be a bit testy
May / June 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 482
Abstract: Unfortunately, the passive activity loss rules can become a huge roadblock for taxpayers involved in rental activities. This article discusses a case that demonstrates how work done as an employee can help qualify a taxpayer for the benefits of the real estate professional exception. Stanley v. U.S. (W.D. Ark 2015)
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What makes a property sale a “dealer” sale for tax purposes?
May / June 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 567
Abstract: When the IRS classifies a sale of real property as a “dealer” sale — meaning the property was held for sale to customers in the ordinary course of a trade or business — the tax ramifications can be quite dramatic. This article explains how a California couple who conducted real estate business through several entities were challenged by the IRS. The property was originally acquired for development but the taxpayer contended that it held the property primarily to allow the market to recover from the recession. The article explains why the IRS viewed it as an investment.
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How to use less-than-perfect comps to estimate value
May / June 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 565
Abstract: In today’s volatile real estate market, it’s often difficult to obtain a meaningful estimate of what a parcel of commercial real estate is currently worth. This article discusses how taxpayers can deal with distressed sales and rely on comparables to arrive at the best estimate.
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New tax law offers PATH to savings
May / June 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 801
Abstract: In late December 2015, President Obama signed H.R. 2029, which includes provisions that created the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act). The wide-ranging tax law makes permanent or extends the Section 179 deduction, bonus depreciation and the 15-year straight-line depreciation cost recovery period. This article explains how the PATH Act works and how taxpayers can benefit from it. A sidebar notes that the act has made permanent the deduction for contributions of real property for conservation purposes.
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Lease option … or sale? It matters to the IRS
March / April 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 466
Abstract: Quite often, lease options are used in real estate transactions, when property owners run into difficulty finding a suitable buyer. A lease option is a traditional lease with a purchase option that gives the tenant the exclusive right to buy the property at the price typically set from the beginning. But, the IRS might recharacterize the arrangement as a sale in the form of a contract for deed. This article explains how lease options work.
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Coming into its own: LLC investments
March / April 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 720
Abstract: In the last decade, limited liability companies (LLCs) have become a preferred form of business entity through which to hold title to investment real estate properties. Before there were LLCs, real estate investors seeking limited liability protection were largely limited to using corporations to acquire title — a form of entity that has potential drawbacks. This article explains how an LLC works, the environmental risks that accompany it and various other issues.
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IRC Section 1231 – It’s the best of both worlds
March / April 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 564
Abstract: Section 1231 of the Internal Revenue Code (IRC) provides that gains on the sale of qualified property (property used in a business held more than one year) are eligible for capital gains treatment (vs. ordinary income). This article explains the rule’s requirements and how it can apply to property sold by owners or developers.
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Tax Court disallows property dealer’s bad debt deduction
March / April 2016
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 790
Abstract: If a taxpayer ever had a debt go bad, he or she may have believed that they could at least get a tax deduction out of the situation. Unfortunately, that’s not always the case. This article shows why one property dealer in Maryland had to learn that lesson the hard way. A sidebar explains why taxpayers should never overlook the personal bad debt deduction.