REA
Showing 49–64 of 303 results
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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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The homegrown advantage – Consider a community bank for your next loan
November / December 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 441
Abstract: Real estate developers and owners often overlook community banks as a source of financing. But these lenders offer some distinct advantages for borrowers who understand what “homegrown” banks consider when making lending decisions. This article highlights the advantages of using a community bank for real estate loans.
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Investing 101 – Tips for what to look for before buying
November / December 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 661
Abstract: In any real estate portfolio, the goal is to be profitable. And while the commercial real estate market has improved significantly since the lows seen during the Great Recession, investing still involves understanding the market. This article takes a look at steps real estate investors can take to help bolster their investment portfolio.
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Ready for the new lease accounting rules?
November / December 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 658
Abstract: The Financial Accounting Standards Board’s new standard for accounting for leases is poised to take effect for public companies and certain other entities for periods beginning after December 15, 2018. Although early adoption is permitted, other organizations that follow U.S. Generally Accepted Accounting Principles must comply for annual periods beginning after December 15, 2019, and for interim periods beginning a year later. This article discusses how the standard will directly affect companies that lease assets, as well as its impact on lessors, too, particularly when negotiating leases with tenants.
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Real estate activities vs. investments: Why it matters
November / December 2018
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 834
Abstract: 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. This article summarizes the legal case and the importance of holding property as either an investment or in the course of business. Conner v. Comm’r, No. 2018-6 (Tax Ct. Jan. 22, 2018)