REA
Showing 65–80 of 303 results
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How the TCJA changes depreciation periods for real property
September / October 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 463
Abstract: The Tax Cuts and Jobs Act (TCJA) alters the recovery periods for certain kinds of property depreciated under the modified accelerated cost recovery system (MACRS) and the alternative depreciation system (ADS). The law also expands eligibility for some additional depreciation deductions. This brief article examines how the TCJA affects depreciation periods for nonresidential and residential properties, as well as improvement property, and looks at how the TCJA generally limits business interest expense deductions.
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Captive insurance strategies can pay off for real estate operators
September / October 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 660
Abstract: Federal tax law has permitted U.S. businesses to form so-called “captive” insurance companies for many years, and numerous large companies have done so. It’s only relatively recently that the arrangement has gained traction with smaller public and privately owned companies. This article discusses how they work, the potential advantages and disadvantages and whether a real estate business may benefit from pursuing captive insurance strategies.
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Should you invest in infrastructure?
September / October 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 538
Abstract: According to the National Oceanic and Atmospheric Administration, 2017 was the costliest year on record for natural disasters in the United States. And 2018 has already seen severe weather, including numerous floods, tornadoes and wildfires and the ongoing volcanic eruption on the island of Hawaii. This article looks at why these events, along with other recent disasters and an ever-growing backlog of deferred maintenance, underline the need for infrastructure upgrades in the United States, which may provide opportunities for real estate investors.
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Tax Cuts and Jobs Act – New law increases holding period for carried interests
September / October 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 818
Abstract: On the campaign trail, President Trump pledged that tax reform under his leadership would target carried interests — more widely known in the real estate industry as the “promote” in partnership agreements or operating agreements for limited liability companies that are treated as partnerships for tax purposes. In the end, the Tax Cuts and Jobs Act (TCJA) only modifies the rules for carried interests, largely preserving their favorable tax treatment, rather than eliminating that treatment. This article reviews what’s new and what’s left unanswered under the TCJA. A sidebar explains why deciding whether to convert to a C corporation is a complex matter.
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How to opt out of the new partnership audit rules
July / August 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 410
Abstract: Many real estate businesses are formed as partnerships, and, beginning this year, the IRS is applying new procedures to its partnership audits. Under the procedures, any adjustments and penalties after an audit generally will be assessed against the partnership itself, rather than against individual partners. Certain partnerships can opt out of the new procedures, though, and the IRS has issued final regulations that explain the who and how of this procedure. This article examines what real estate professionals need to know.
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C corporation acquisitions and the TCJA – What you need to know
July / August 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 713
Abstract: Investing in real estate oftentimes means holding the property in diverse types of corporations or partnerships. Investors looking to purchase property held by a C corporation need to know the IRS rules governing this kind of corporation. This article summarizes how the Tax Cuts and Jobs Act affects how C corporations are taxed, and looks at transfer tax issues.
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Recent legislation encourages low income developments
July / August 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 611
Abstract: Both the Tax Cuts and Jobs Act (TCJA) and Congress’s massive new spending package received widespread media coverage, but a couple of provisions that incentivize investments in low income housing have largely gone under the radar. One provision in the tax law offers significant tax breaks for investors looking to defer or abate capital gains taxes, while the spending bill boosts the Low Income Housing Tax Credit (LIHTC). This article describes the new qualified opportunity zones and expansion of the LIHTC.
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Documentation matters in real estate professional exception
July / August 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 816
Abstract: Can a dentist qualify as a “real estate professional” and be allowed to deduct rental real estate losses? Maybe. This article reviews a U.S. Tax Court case finding that a dentist who also operated a real estate business qualified for the real estate professional exception, based largely on his extensive documentation of the hours he’d spent. A short sidebar reviews a separate case in which an architect’s rental activity losses were upheld by the Tax Court. Zarrinnegar v. Comm’r, No. 2017-34 (Tax Ct. Jan. 13, 2017) Franco v. Comm’r, No. 2018-9 (Tax Ct. March 6, 2018)
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Brush up on the tax rules for rental property owners
May / June 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 449
Abstract: With the favorable new tax provisions for real estate businesses, it’s likely that the number of people investing in rental property will grow in the next few years. Real estate investors thinking about making the leap need to understand the basic federal income tax rules for rental income and expenses. This article covers the definition of rental income and the limits of deductible income.
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What you need to know about construction loans
May / June 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 634
Abstract: To help secure a construction loan, it pays to understand the lender’s mindset. This article offers a primer on how the loan process works and discusses four ratios that lenders use to scrutinize a loan request: loan-to-value, loan-to-cost (LTC), debt-service-coverage and net-worth-to-loan-size.
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Are you in compliance with the new partnership audit rules?
May / June 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 538
Abstract: Many real estate–related businesses are formed as partnerships, making them subject to the regulations for partnership audits under the Bipartisan Budget Act of 2015 (BBA). The proposed regulations — which significantly change the previous rules regarding partnership audits and liability for any resulting adjustments — take effect for taxable years beginning after December 31, 2017. This article reviews the far reaching implications of the new rules.
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Too good to be true – Court rejects deductible theft loss for real estate scam
May / June 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 844
Abstract: No one wants to fall victim to a fraudulent real estate scam, but, as fraudsters become increasingly sophisticated, the risk is real. Though it’s a small concession, victims should be able to claim a tax deduction for fraud losses, right? Not necessarily. This article reviews a recent legal case in which some investors learned that lesson the hard way. A short sidebar summarizes the importance of following the rules when seeking refunds attributable to “partnership items.” Hamilton v. U.S., No. 15-303, N.D. Ind., September 5, 2017
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Using blockchain to build a better real estate transaction
March / April 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 450
Abstract: Blockchain technology first gained attention as the digital ledger that makes Bitcoin transactions possible. Today, it’s migrated to other areas that could benefit from a distributed, unalterable ledger. This brief article examines why blockchain is a logical fit for real estate transactions, which can be riddled with inaccuracies.
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Ways to keep your properties profitable
March / April 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 671
Abstract: While the U.S. real estate market is currently enjoying an upswing in most areas, it’s seen numerous downturns over the years. Whether the market is up or down, commercial property owners and investors continually look for ways to enhance profits. This article highlights some suggestions to consider.
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Is a GP fund right for your deal?
March / April 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 552
Abstract: Sponsors are often on the hunt for innovative ways to fund their real estate projects, particularly when they find themselves under capital constraints that limit their ability to invest. This article discusses why some sponsors turn to general partner (GP) funds to meet their capital contribution obligations while maintaining the freedom to invest in additional projects.
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Sitting pretty – Real estate industry among the big winners on new tax law
March / April 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 938
Abstract: By passing the Tax Cuts and Jobs Act (TCJA) in late December 2017, Congress granted the holiday wishes of many involved in real estate. While the TCJA brought good cheer for the business community in general, the real estate industry is particularly likely to reap some lucrative rewards. This article highlights some of the provisions affecting real estate. A sidebar discusses the retention of Section 1031 like-kind exchanges and certain tax credits.