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11.02.11
Segregate Costs to Save Taxes
Many real estate costs are subject to capitalization rules for tax purposes. These rules require the cost of buildings to be depreciated annually over the useful life of a building. The IRS has added several tax benefits in recent years to increase the amount of tax deductions available if certain guidelines are met.
10.20.11
Lease Agreement Legalities: Tread Carefully
This post will discuss three of the important clauses business people should understand in a lease of already built space. If the building or space has not been built, the risks are exponential.
09.29.11
Debtor Solutions Lie with Solvency
Banks are becoming more willing to restructure troubled loans both for personal residences and for business property. Unfortunately, when mortgages are restructured, the debtor can end up with phantom taxable income from the cancellation of debt, resulting in a tax liability with no cash to pay the taxes. There are, however, exceptions to these rules.
09.14.11
Developer to Investor: The Benefits
In today’s real estate environment, it is not hard to imagine a scenario in which a builder or developer may be unable to sell or lease a building he has constructed. If, due to unforeseen circumstances, a developer or builder is unable to sell a piece of property, there is merit in considering whether the individual traditionally considered a dealer has become an investor in a rental property.
07.20.11
Divine Design: Maximizing tax benefits of build-out allowance arrangements
In the U.S. commercial real estate market, unique lease incentive packages are often structured to lure prospective tenants. Frequently included in these incentive packages is a leasehold improvement build-out allowance agreement. When entering into a new lease, the income tax consequences of these build-out allowance arrangements should be taken into consideration to maximize the benefits to both landlord and tenant.
07.06.11
Home Sweet Home
In Illinois, a married couple can hold title to their primary residence as “tenants by the entirety.” Tenancy by the entirety is similar to joint tenancy because at the death of a spouse, the property automatically passes to the surviving spouse. However, tenancy by the entirety is distinguished from joint tenancy because (1) tenancy by the entirety can only be used for the principal residence of a married couple, (2) the property cannot be conveyed or encumbered by one spouse without the written consent of the other, and (3) the property cannot be subject to a sale to satisfy a judgment against only one spouse (the exception to this rule would be the forced sale to satisfy a tax obligation).
05.04.11
Listen to (MOM) Month-Over-Month Sales!
It is on everyone’s mind. What is the current state of today’s residential real estate market? Where is the residential real estate market going? Where can I find a reliable information source for the real story on where the market trends are heading?
04.27.11
Finding The Right Interior Designer
If you have made the decision to hire an interior designer for your next project, congratulations! You recognize that the right professional can create a space as beautiful as it is functional, based on your personal style, which you will enjoy for years. And, a professional will do so efficiently and within your budget, with resources – vendors, drafting software (CAD), liability insurance, etc – to which you probably do not have access. The skill and education a designer can contribute is of value, and if you recognize that, you are well on your way to a successful project!
04.20.11
Structuring Multiple Real Estate Investments
Generally, each real estate investment should be owned by a separate entity. If multiple properties are owned in one entity, a financial problem for one property—such as judgments by vendors or by trip-and-fall plaintiffs—will affect all properties. Think of this strategy as not putting all your eggs in one basket. If each property is in a separate entity, only the troubled property will be at risk and only its owner will be liable. Furthermore, many lenders will require that the borrowing entity own only the property which secures the loan.
03.23.11
Are You A “Professional”?
There are many different types of professionals; professional hit men, professional dancers and professional sports figures. However, there is a type of professional that can be difficult to qualify for but the tax benefits can be very advantageous.