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Category: Real Estate

January 10, 2022

A Dozen Questions to Ask Before Buying Distressed Commercial Properties

  In many areas, the real estate sector has been hit hard. Commercial property, including apartment complexes, retail and industrial properties are down in value. This may attract investors in search of good buying opportunities. However, potential buyers should look beyond low purchase prices when they evaluate these properties. The properties’ physical state, legal issues, and insurance considerations also affect whether they are smart investments. Many of these properties were only partially completed when financial crisis hit, so buyers must… Read more ›

December 7, 2021

Section 1031 Exchanges for Real Estate are More Attractive than Ever

  Real estate investors often unload one property and replace it with another. But making an outright sale of an appreciated property results in a current tax hit. That’s unfortunate if you intend to use the sales proceeds to buy replacement property. The good news: Section 1031 of the Internal Revenue Code allows you to postpone your tax bill by arranging for a property exchange. With real estate prices up dramatically in many markets, the Section 1031 exchange strategy is… Read more ›

November 30, 2021

You May Want to Separate Real Estate Assets from Your Business

  Many companies choose not to combine real estate and other assets into a single entity. Perhaps the business fears liability for injuries suffered on the property. Or legal liabilities encountered by the company could affect property ownership. But there are valid and potentially beneficial tax reasons for holding real estate in a separate entity as well. Avoiding Costly Mistakes Many businesses operate as C corporations so they can buy and hold real estate just as they do equipment, inventory,… Read more ›

October 27, 2021

Working on Your Estate Plan? Consider a Revocable Living Plan

  If you’ve reached an age when you really want to start working on your estate plan, one arrangement to consider is a revocable living trust. Perhaps you’ve heard of one, but you’re fuzzy on the details. Here are the basics. You create one while you’re alive and can cancel it at any time. Generally, you’re both the trustee and the beneficiary, so you control the trust’s assets. With a revocable living trust, you distribute assets to yourself while you’re… Read more ›

October 27, 2021

Don’t Forget to Include Digital Assets in Your Estate Plan

  Does your estate plan include instructions on how to access your online bank and brokerage accounts? What about your social media accounts and electronically stored photos? And if you own blockchain assets, they could be permanently lost if your professional advisor or beneficiaries don’t have the private key to unlock them. The bottom line: It’s important to include digital assets in your estate plan and keep password lists updated. Laws lag developments The laws in the area of digital… Read more ›

October 20, 2021

Selling Real Estate on the Installment Basis

Do you own real estate that will produce a big capital gain when you sell it? Fortunately, you may be able to realize significant tax benefits by negotiating an installment sale of the property. However, there are several potential tax traps to avoid. How do you qualify for installment sale reporting? It’s relatively easy. All you have to do is arrange to receive payments over at least two tax years. For example, say you contract to sell real estate in December… Read more ›

August 17, 2021

Home Office: Collect a Tax Windfall

Today’s technology has made working from home a reality for many people. These individuals and their companies enjoy the benefits of reduced overhead and no commuting hassles. Another bonus: The IRS issued regulations on home sales that provide an unexpected tax bonanza for people who work out of their homes. Under the home sale exclusion law, you can pocket up to $250,000 of tax-free capital gain from a sale of a home ($500,000 for joint filers). To qualify, you must… Read more ›

June 23, 2021

Why Effective Cash Flow Management Is Crucial for Subcontractors

“Why Effective Cash Flow Management is Crucial for Subcontractors” was originally published in the April 2021 issue of The Contractors Compass (American Subcontractors Association). Click here to view.  A good way to think about cash flow is to see it as your business’ wallet. Cash flow reports are crucial tools for business owners and managers to help them understand where their business’ money is coming and going, and when. Making decisions based on that information is key. Establishing good accounting… Read more ›

August 21, 2020

5 COVID-19 Obstacles Construction Companies Need to Navigate

Although the novel coronavirus (COVID-19) pandemic has walloped most U.S. businesses, how your business recovers will largely be construction-industry-specific. For example, most construction companies need to address disruptions to project schedules and overseas supply chains. They may need to renegotiate building contracts and find replacements for workers who are no longer available due to travel restrictions. Depending on your niche, the fallout from COVID-19 could last months and possibly even years. Here are some tips on handling five major obstacles… Read more ›

July 13, 2020

COVID-19 Crisis May Affect Tax Angles for Rental Property Losses

Economic fallout from the COVID-19 crisis will cause many rental real estate properties to run up tax losses in 2020 — and possibly beyond. Here’s a summary of important federal income tax rules for such losses. What You Can Write Off Rental property owners can deduct mortgage interest and real estate taxes. They can also write off all standard operating expenses that go along with owning rental property. Examples include: Utilities, Insurance, Repairs and maintenance, and Care and maintenance of… Read more ›