Three Landlord-Friendly Fixes to Lease Accounting Rules
The new rules on accounting for leases have already taken effect for public companies and will apply to all other entities in 2020. While most of the rule changes apply to tenants, some of the provisions mark a departure for landlords — and many parties raised concerns about the rules’ cost and complexity soon after […]
Don’t Wait to Purchase Business Interruption Insurance
Kathy Z. Jeziorski
It is important for real estate businesses to have adequate insurance coverage, and you cannot just cover the property itself. Natural disasters, as well as utility failures, may render properties temporarily or permanently unusable. Business interruption insurance can help when you are unable to generate your usual income.
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.