Consider a Community Bank for Your Next Loan
Have you ever borrowed funds from a community bank? Real estate developers and owners often overlook this source of financing, but these lenders offer some distinct advantages for borrowers.
Real Estate Activities Versus Investments: Why it Matters
Justin L. Sylvan
The characterization of a real estate entity’s activities as a business or an investment makes a big difference to the bottom line when it comes to taxation. In Conner v. Commissioner, a developer whose plans were derailed by the Great Recession recently learned this lesson the hard way.
Is it a Gain or a Loss?
Anita S. Wescott
The U.S. Tax Court regularly hears cases regarding the proper tax treatment of property sales. Recently, though, the court addressed a real estate-related situation in Simonsen v. Commissioner that it described as a “conundrum only tax lawyers could love.”
Investing 101: Tips for What to Look for Before Buying
In any real estate portfolio, the goal is to be profitable. While the commercial real estate market has improved significantly since the lows seen during the Great Recession, investing still involves understanding the market. Let’s take a look at steps you can take to help bolster your investment portfolio.
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.