How the TCJA Changes Depreciation Periods for Real Property
The Tax Cuts and Jobs Act provides some changes to the recovery periods for certain property depreciated under the modified accelerated cost recovery system and the alternative depreciation system.
Using Blockchain to Build a Better Real Estate Transaction
Kadir P. Sunardio
Blockchain technology first gained attention as the digital ledger that makes Bitcoin transactions possible. Today, it has migrated to other areas that could benefit from a distributed, unalterable ledger. Here’s some valuable information for commercial property investors who are unfamiliar with how blockchain can benefit them.
Documentation Matters for Real Estate Professional Exception
Most people would not think that a dentist would qualify as a real estate professional who is allowed to deduct rental real estate losses. The IRS thought the same thing. Fortunately for one dentist who also operated a real estate business, the U.S. Tax Court found that he qualified for the real estate professional exception, based largely on his extensive documentation of the hours he had spent.
The Tax Impact of Theft in a Real Estate Scam
No one ever wants to be the victim in a real estate scam, but as scams become more increasingly sophisticated, the risk is also growing rapidly. Though tax rules offer some relief, victims do not always benefit from a tax deduction for fraud losses.
LLC: When Does It Not Protect Your Personal Assets?
Limited liability companies (LLCs) are common ways for real estate owners and developers to hold title to property. Their popularity is due to the fact that LLCs limit members’ personal liability. In other words, only an LLC member’s equity investment is usually at risk, not his or her personal assets. However, this does not mean personal liability never exists for the LLC’s debts and liabilities.
Keeping Your Properties Profitable
Kathy Z. Jeziorski
While the U.S. real estate market is currently enjoying an upswing in most areas, it has 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. Here are some suggestions to consider.
Don’t Delay – What You Need to Know About Delay Damages
Anita S. Wescott
It is bound to happen occasionally. A perfectly timed construction project hits an unexpected snag, leading to major financial repercussions. When an owner causes the delay, the parties may wind up in court to determine how to allocate damages — no easy task when a contractor’s costs span multiple projects. This article reviews two ways to determine overhead allocations and discusses other damages contractors may seek.
Environmental Due Diligence Can Preempt Costly Liability
If you buy property with environmental issues, you may be liable, even if you were not responsible for the presence of contaminants. To best protect yourself, be sure to include environmental review as part of your due diligence. Why Conduct Environmental Due Diligence The most obvious reason investors conduct environmental due diligence is to know […]
New Landscape for Real Estate Investment Trusts
Justin L. Sylvan
The Protecting Americans from Tax Hikes (PATH) Act made substantial changes to certain areas of the Real Estate Investment Trust (REIT) rules. Many of the provisions provide REITs with additional flexibility regarding the nature of their assets and income, which make REITs an appealing investment vehicle for foreign taxpayers (see Sidebar). Prohibited Transaction Safe Harbors […]
What Kind of Insurance Does the Project Need?
Adam M. Levine
Every business requires comprehensive insurance coverage to protect its assets and income. However, property owners and developers need to consider more than just general liability, workers’ compensation and business interruption policies. Here is a quick overview of what else may be necessary.