Real Estate Advisor
Showing 193–208 of 303 results
-
Ask the Advisor – Is wrap-up insurance right for my project?
May / June 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 414
Abstract: The expense of construction litigation and insurance has prompted developers to seek cost-efficient ways to limit their liability. One option, known as wrap-up insurance, can provide comprehensive coverage while cutting costs. It’s worth considering for multimillion-dollar, labor-intensive projects and when permitted under state law. This article explains how it works and the advantages it offers for developers.
-
Court accepts reductions in value to reflect carrying costs and lack of control
May / June 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 650
Abstract: When real-estate-related assets undergo valuation, their value may be reduced for lack of marketability. But, as the wife in a divorce case recently learned the hard way, the value of ownership interests in companies holding such real estate assets may be further reduced to reflect carrying costs and lack of control. This article warns that interests in real-estate-related entities could be subject to sizable discounts in a variety of contexts. Barth v. Barth (Mo. App. 2012).
-
Ward off really big problems – Regularly perform preventive maintenance
May / June 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 642
Abstract: Just one poorly maintained property can result in myriad headaches and possible lawsuits. That’s why it’s important to stay on top of repairs and maintenance on all buildings, whether they be residential or commercial. This article shows how to create a formal schedule for fixed asset repair and maintenance, taking into account labor requirements and tax considerations.
-
ATRA: Digging into the new tax law
May / June 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 834
Abstract: The American Taxpayer Relief Act of 2012 (ATRA) not only has an effect on individual tax rates, but also can have a significant effect on the bottom lines of real estate developers and investors. This article looks at ATRA’s implications for depreciation, Section 179 expensing and energy-related incentives. A sidebar discusses tax credits available for hiring people from certain target groups that have faced significant barriers to employment.
-
Ask the Advisor – Is it safe to accept a letter of credit as a security deposit?
March / April 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 411
Abstract: Commercial landlords have historically preferred that their tenants provide letters of credit, rather than cash, for security deposits. A letter of credit won’t become subject to claims by the tenant’s creditors and isn’t covered by automatic stays imposed by bankruptcy courts. But enforcing letters of credit can be tricky and time-consuming, and come with an annual fee payable by the tenant. Furthermore, the FDIC isn’t required to honor bank-issued letters of credit if the bank fails. This article offers ways to reduce the risk of lost security deposits.
-
Easements on mortgaged properties – Appeals court paves way for charitable deduction
March / April 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 583
Abstract: Savvy property owners are always looking for ways to reduce their income taxes. Now, thanks to a ruling by the U.S. Court of Appeals for the First Circuit, owners may be able to claim a deduction for donating conservation easements on their properties even if those easements are subject to a mortgage. This article discusses the “extinguishment provision” that was at the heart of the dispute in this case. Kaufman v. Commissioner (1st Cir. 2012).
-
Murky waters – Distinguishing between an investor and a dealer for tax purposes
March / April 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 752
Abstract: Someone who deals with real estate transactions on a regular basis may wonder why it’s necessary to make the distinction between being an “investor” as opposed to a “dealer.” But that distinction is key in the eyes of the IRS and can have a significant impact on one’s tax bill. This article discusses why, and explains how the IRS and the courts distinguish between an investor and a dealer for tax purposes.
-
Worried about interest rate risks? Consider a swap agreement
March / April 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: The continuing uncertainty of the credit market is prompting concern among many owners and investors about the risk of rising interest rates. Some have turned to interest rate swap agreements to mitigate their risk. The arrangements, which are especially appealing when fixed rate loans are unavailable, can pay off for both borrowers and lenders. This article shows how these agreements work and how title insurance can play a role in securing the obligations they entail. A sidebar explains how some swaps are custom-made to fit the parties’ financing needs.
-
Ask the Advisor — Are tax breaks available for energy-efficient construction?
January / February 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 482
Abstract: With the emphasis on green construction and technologies, more owners and investors are considering adding energy-efficient components into new construction, as well as retrofitting existing buildings with energy-efficient improvements. A big incentive is the potential tax benefits under Internal Revenue Code Section 179D. This article explains how to take advantage of this break before its currently scheduled expiration date in 2014.
-
Valuations in a tough market: Thinking outside the box
January / February 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 769
Abstract: Under the market and income approaches, recent market data is used to derive current value. But scarce financing and weak performance are keeping risk-averse investors at bay. Moreover, many recent deals may have involved distressed buyers forced to sell. With few truly comparable deals for appraisers to hang their hats on, many are thinking outside the box. This article discusses the factors that appraisers study to normalize data and truly understand what’s happening in the marketplace.
-
High construction costs prevail — Tips on how to control overall project expenses
January / February 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 644
Abstract: Construction costs were generally high for building materials in 2012, and the Associated General Contractors of America (AGC) is predicting a long road before costs start to stabilize. This article offers tips to help contractors keep building costs under control. It addresses areas such as forming a construction team early, scheduling projects during normally slow seasons, managing fuel costs and employing value engineering.
-
FLP survives IRS challenge — Court notes transfer of real estate was for a legitimate nontax reason
January / February 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 920
Abstract: Family limited partnerships (FLPs) offer a tax-efficient way to transfer assets — including real estate — to family members. This article discusses a case in which a couple transferred woodlands properties to an FLP, so that they could become a family asset that the family could eventually build homes on for sale purposes. The U.S. Tax Court refuted the IRS’s argument that the transfer didn’t qualify as a “bona fide sale for adequate and full consideration.” A sidebar lists “partnership formalities” an FLP must observe. Citation: Estate of Joanne Harrison Stone (Tax Court 2012)
-
Ask the Advisor — Should I invest in triple-net lease property?
November / December 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 501
Abstract: Properties with triple-net leases can be quite attractive to real estate investors, but they aren’t as straightforward as they might seem. This article explains what a triple-net lease is and the advantages it can offer (appreciation, tax benefits, a steady stream of income) — but also notes that inflation could create a nightmare if rent doesn’t keep pace with market rates. Due diligence is critical, as changes often can’t be made once the lease has been signed.
-
The pros and cons of leveraging — How to use other people’s money to invest in real estate
November / December 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 802
Abstract: Investors can make a lot of money by leveraging other people’s money to invest in real estate. But it’s possible to have too much of a good thing, as many are discovering in the wake of the credit crisis. Lower property appraisals, combined with the tightening of loan-to-value ratios, have made cash much harder to come by. This article shows how to avoid overleveraging.
-
IRS clarifies capitalization of leasehold improvements
November / December 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 585
Abstract: Leasehold improvements can pose some tricky tax issues for all parties involved. In a recent legal memorandum, the IRS addressed one such issue — the proper capitalization treatment of indirect costs incurred by a lessee to construct real property it then leased. This article takes a look at a case involving Internal Revenue Code (IRC) Section 263A, Capitalization and Inclusion in Inventory Costs of Certain Expenses, and IRC Sec. 263(a), Capital Expenditures, in which the lessee lost the battle.
-
What not to do when donating property
November / December 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 914
Abstract: Charitable donations can provide real estate owners with valuable tax deductions — if the donors meet IRS requirements for taking such deductions. This article discusses a case in which the U.S. Tax Court disallowed a couple’s charitable deductions for their donations due to their failure to comply with IRS appraisal requirements — despite the fact that they likely undervalued the donations on their income tax returns. The article shows where the couple went wrong, and thus underscores the importance of obtaining appraisals from qualified appraisers before donating real estate. A sidebar lists the requirements for an appraiser to be “qualified.” Citation: T.C. Memo. 2012-152, 5/29/12