Real Estate Advisor
Showing 225–240 of 303 results
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Ask the Advisor – My commercial tenant just filed for bankruptcy — now what?
January / February 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 501
Abstract: The uncertain economy is teaching landlords a hard lesson: Even reliable, long-time tenants can tread water for only so long, and bankruptcy is an inevitable reality for some. A tenant’s bankruptcy filing has repercussions for its lease obligations, so it’s important to know what to expect and how to protect oneself. This article explains the rights and responsibilities of landlords and tenants under a Chapter 7 liquidation or Chapter 11 reorganization.
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How to leverage loss deductions when transferring FLP or LLC interests
January / February 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 613
Abstract: Real estate investors who hold properties in a family limited partnership (FLP) or limited liability company (LLC) are likely making transfers of ownership interests to family members in an effort to “shift” income to those in a lower tax bracket or to tax efficiently transfer wealth to the next generation. But, in the current economy, some properties held by an FLP or LLC may be generating operating losses. This article shows how one can still make a gift of an FLP or LLC interest and maximize the benefit of loss deductions.
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Decisions, decisions — Options for minimizing exit costs from a CMBS loan
January / February 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 873
Abstract: Commercial mortgage-backed securities (CMBS) loans provide real estate investors access to a larger pool of financing at lower rates than they could qualify for on their own. But when buying a property that’s being financed with a CMBS loan, it’s important to consider the consequences of exiting the loan. This article explains the concepts of yield maintenance vs. defeasance and their role in CMBS loans, and shows how to craft the loan document. Careful forethought will be rewarded with greater flexibility and lower costs if the property is later sold or refinanced.
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Know the tax consequences of an installment sale
January / February 2012
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 717
Abstract: In a slow real estate market where financing can be tough to obtain, some investors are finding they have a better chance of disposing of real property in an installment sale. This type of transaction provides some financial benefits to both buyer and seller. But it’s important to understand the ins and outs before jumping in. This article discusses the potential pros and cons, and explains how to report an installment sale under the “installment method.” A sidebar notes that a wraparound mortgage can avoid the negative tax treatment that occurs when a buyer assumes an existing mortgage that’s more than their installment sale basis in the property.
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Ask the Advisor – Should I use specialty leasing to increase ancillary revenue?
November / December 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 418
Abstract: As the economy continues to wobble along, many property owners are looking for creative alternative sources of revenue. Specialty leasing programs can provide a welcome revenue boost. But it’s important to know what taking this route involves. This article discusses what specialty leasing is and the issues to be aware of.
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The master lease: An umbrella of protection
November / December 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 542
Abstract: In a sluggish economy, one must fortify his or her interests and properties so as to come out on top once the economy rebounds. A master lease not only can help protect properties, but also can lessen the possibility of rent defaults. This article discusses what a master lease has to offer for master tenants, owners and lenders. But it’s critical to pick the right lease structure.
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IRS makes it easier to deduct real estate activity losses
November / December 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 790
Abstract: Under recently released IRS Revenue Procedure 2011-34, real estate professionals can now more easily make late elections to treat all interests in rental real estate as a single rental real estate activity. This election can help them retroactively meet material participation requirements and deduct losses, potentially generating an income tax refund. This article discusses the various requirements involved.
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When it’s time to re-evaluate investments, get a valuation
November / December 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 862
Abstract: Commercial property values are down for many reasons. But choosing the right path forward — with possibilities ranging from staying the course to teardowns to surrendering to the bank — may require more than just a general sense of decreased value. A formal valuation can help chart the best course of action. This article discusses the critical factors involved in a valuation. And, as a sidebar explains, even a decreased value can offer a silver lining: reduced expenses for property insurance and taxes.
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Ask the Advisor – What type of due diligence is necessary in today’s market?
September / October 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 423
Abstract: The commercial real estate market remains rocky. Historical assumptions about rent growth, lease renewals, and similar issues are less reliable than in the past. That means due diligence for new transactions will require more intensive effort and a broader, more conservative focus. This article describes three kinds of information that must be reviewed, and steps that go beyond traditional due diligence.
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Year end is fast approaching: Tax strategies to consider
September / October 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 589
Abstract: This article looks at a number of year end strategies that take advantage of enhanced bonus depreciation; shorter time periods for depreciation under the Modified Accelerated Cost Recovery System (MACRS); and deferring taxable income to next year and accelerating deductions to this year. It also discusses the tax implications of retirement planning, charitable giving, and hiring one’s children to work in the family business.
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Sec. 179 expensing – You may qualify for extra expense deductions
September / October 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 455
Abstract: Tax law changes passed last year opened the doors for some major tax savings on 2011 business purchases. Under the temporary modifications to Section 179 expensing rules, one might be able to deduct — rather than depreciate over a number of years — costs related to qualified leasehold-improvement, restaurant and retail-improvement property. The article explains what’s included in these three forms of property, along with the deduction amounts that apply.
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A GRAT can be a great way to transfer a business
September / October 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 979
Abstract: A grantor retained annuity trust (GRAT) can help a business owner minimize gift and estate tax liability associated with transferring ownership interests while retaining an income stream for a specified period of time. And it may be particularly powerful in the current economic environment, where the lifetime gift tax exemption is high and the value of a business may be lower than it was a few years ago. This article describes the nuts and bolts of this irrevocable trust, along with IRS rules on the trust instrument used to create a GRAT. A sidebar compares a GRAT with a grantor retained unitrust (GRUT) and grantor retained income trust (GRIT).
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Ask the Advisor – How can lease options help me in this slow economy?
July / August 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 403
Abstract: Property owners who’ve had trouble locking down sales are offering potential buyers a gradual approach to purchasing their property — lease options. Although a lease option may not be the ideal structure for a sales transaction, it offers some attractive benefits, especially in today’s down market. This article explains how lease options work and their potential benefits and drawbacks.
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Before surrendering property, consider the tax consequences
July / August 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 611
Abstract: With the real estate market still sluggish, some property owners are wondering: Would they be better off surrendering their property, rather than continuing to struggle with the loan obligations? Although the answer may seem obvious, discharging debt in this way can have significant tax consequences that should be considered. This article looks at the tax consequences of defaulting on recourse vs. nonrecourse loans.
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Foreclosure investing: It’s not for the fainthearted
July / August 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 540
Abstract: Flipping foreclosures may seem like a tempting investment opportunity, but it isn’t for the fainthearted. It often requires a lot of work, research and money — it may take thousands of dollars to repair perhaps years of neglect and to make the property salable. And the property may come with hidden surprises, such as federal tax liens, partial interests, leased land, and other liabilities. This article describes some of the considerations involved and the options available, including bank-owned foreclosed properties and preforeclosures.
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Determining material participation – Tax Court addresses property owner’s “on-call” hours
July / August 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 1059
Abstract: Real estate professionals enjoy some tax benefits that aren’t available to other taxpayers, but the professional must meet strict rules to qualify as one. For example, it’s necessary to perform more than 750 hours of real estate–related services. But does being “on-call” qualify for hours worked? This article looks at one case in which the Tax Court disallowed the claims of a couple that they met the requirement because the husband had been on-call to perform activities related to the rental properties. A sidebar explains why they additionally had to pay a penalty. James F. Moss v. Commissioner, 135 T.C. No. 18 (2010).