Real Estate Advisor

Showing 33–48 of 291 results

  • Using cost segregation studies for like-kind exchanges

    July / August 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 441

    Abstract: Property owners have long turned to cost segregation studies to take advantage of accelerated depreciation methods, including bonus depreciation and Internal Revenue Code Section 179 expense deductions. Accelerated first-year deductions don’t change the total amount of tax that’s owed over an asset’s useful life, but they do change the timing of deductions, which lowers taxes and generates extra cash flow in the year an asset is placed in service. This article examines how, thanks to the Tax Cuts and Jobs Act (TCJA), the studies may also help taxpayers secure greater tax savings in so-called “like-kind” exchanges under Sec. 1031.

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  • When it rains, it pours – Consider an IRR waterfall for your next development project

    July / August 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 640

    Abstract: The internal rate of return (IRR) waterfall arrangement has gained popularity in recent years as a way to shift risk from equity investors, while rewarding developers for strong results. But no one should enter into such an arrangement without a firm grasp of how it works. This article looks at how these arrangements can benefit real estate professionals.

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  • M&A due diligence – Is this bargain-priced property a diamond in the rough?

    July / August 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 631

    Abstract: With real estate values holding fairly steady over the past several years, investors are quick to jump on a perceived bargain. While getting rock bottom pricing isn’t a bad idea, investors need to be careful about doing their homework before closing. A bargain can quickly turn into a problem if you fail to consider more than just the price. This article presents five other factors to consider.

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  • Rental activities qualify for new tax break

    July / August 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 935

    Abstract: The Tax Cuts and Jobs Act (TCJA) created a significant new tax deduction for qualified business income (QBI) for so-called “pass-through” entities for 2018 through 2025. But it also created uncertainty about whether owners of rental real estate were eligible for the deduction. This article reviews recent IRS guidance addressing this gap, including a proposed safe harbor that allows certain real estate enterprises to qualify as a business for purposes of the deduction.

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  • Do you understand the “project influence” rule in property valuation?

    May / June 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 416

    Abstract: Eminent domain allows the government to seize private land for public use. The U.S. Constitution requires the government to pay “just compensation” — generally the property’s fair market value — when it exercises this power. That’s where the project influence rule comes into play. This brief article summarizes the project influence rule, its valuation implications and its limited scope.

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  • How nonrecourse loan carveouts jeopardize personal liability

    May / June 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 625

    Abstract: With the many types of loans available to borrowers, nonrecourse loans remain popular with borrowers because they can shield them from personal liability. But lenders will try to add “carveouts” to minimize that protection. If borrowers violate carveouts in the loan document, they may be left with full liability. This article highlights why both lenders and borrowers will negotiate nonrecourse loan carveouts, with borrowers looking to minimize personal liability.

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  • Use artificial intelligence to benefit CRE business

    May / June 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 632

    Abstract: Artificial intelligence (AI) is bringing sweeping change to a wide variety of industries, and commercial real estate is ripe for this technology. From marketing to property management, AI could expedite processes and cut costs in a range of ways. But what exactly is AI? This article provides a primer.

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  • What not to do in like-kind exchanges – Court finds sale-leaseback strategies produce loans

    May / June 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 835

    Abstract: The Internal Revenue Code has long allowed taxpayers to use like-kind exchanges to defer taxable gains. That doesn’t necessarily mean a like-kind exchange will go unchallenged by the IRS, though. This article summarizes a recent case in which the agency — and two federal courts — found the company’s property transactions more akin to loans than like-kind exchanges. A short sidebar demonstrates why appraisers must be allowed to reach their conclusions independently. Exelon Corp. v. Comm’r, No. 17-2964, -2965, Oct. 3, 2018, 7th Cir.

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  • Historic Tax Credit is alive and well

    March / April 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 426

    Abstract: Prior to the passage of the Tax Cuts and Jobs Act (TCJA) in late 2017, the future of the Historic Tax Credit (HTC) for rehabilitating historic buildings was questionable. This article looks at the HTC — also known as the federal rehabilitation credit — and why it remains a valuable tool for developers, even though it’s slightly less beneficial than it was for projects completed before 2018.

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  • 3 fixes to lease accounting rules for landlords

    March / April 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 526

    Abstract: 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 their release. This article summarizes three areas where the Financial Accounting Standards Board (FASB), the body behind the lease accounting standard, made some “narrow-scope amendments” intended to facilitate implementation for landlords.

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  • Is seller financing right for your next transaction?

    March / April 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 614

    Abstract: The commercial real estate market has been steadily making improvements since the 2008 financial crisis. While traditional financing is readily available, seller financing may be another viable option for many investors. This article highlights what real estate investors need to know.

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  • Introducing the Opportunity Zone tax incentive – IRS guidance answers taxpayers’ questions

    March / April 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 882

    Abstract: One provision of the Tax Cuts and Jobs Act was designed to spur capital investments in low-income areas. This new tax break allows investors to defer — or even eliminate — their capital gains taxes on investments in so-called “Opportunity Zones.” This article reviews proposed regulations by the IRS that answer some questions that real estate investors have asked about these tax incentives. A sidebar offers a brief discussion of qualified opportunity funds.

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  • Crowdfunding comes to CRE

    January / February 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 425

    Abstract: Kickstarter and other popular crowdfunding platforms are used to obtain funding from individual investors for everything from independent movies and music to health care and legal expenses. In the past few years, crowdfunding platforms have also popped up to offer individuals a way to invest in commercial real estate (CRE) projects. This article examines how this alternative form of financing could pay off for both investors and developers.

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  • Is it a gain or a loss? Tax Court determines amount realized is neither

    January / February 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 580

    Abstract: The U.S. Tax Court regularly hears cases regarding the proper tax treatment of property sales. This article reviews a case that the court described as a “conundrum only tax lawyers could love.” Karl and Christina Simonsen v. Commissioner (150 T.C. No. 8, 2018)

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  • Don’t wait to purchase business interruption insurance

    January / February 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 643

    Abstract: It’s important for real estate businesses to have adequate insurance coverage. And you can’t just cover the property itself. Natural disasters, as well as utility failures, may render properties temporarily or permanently unusable. This article discusses how business interruption (BI) insurance can help when businesses are unable to generate their usual income.

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  • Accounting for construction contracts – IRS targets large land developers

    January / February 2019
    Newsletter: Real Estate Advisor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 956

    Abstract: The IRS Large Business and International (LB&I) Division is currently pursuing a “compliance campaign” against large land developers of residential communities for improper use of the more taxpayer-friendly completed contract method (CCM) of accounting. The IRS believes that some developers are deferring profits that should be recognized — and taxed — earlier. This article looks at what real estate developers need to know. A brief sidebar reviews IRS compliance campaign terminology.

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