Category: Real Estate

  Building maintenance is a critical process if you want your real estate to continue to function as intended, and to deliver an uninterrupted steady stream of revenues in the foreseeable future. A good maintenance program also helps you avoid certain lawsuits, for several reasons. First of all, a properly maintained building generally means the grounds are also well-kept and cleared of debris. Common areas are functioning as they should, and are free of unnecessary machinery and equipment. This translates… Read more ›

  Over the last year, consumer prices rose 7.9%, according to the latest data from the U.S. Bureau of Labor Statistics. The Consumer Price Index covers the prices of food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. This is the highest 12-month increase since 1982. Increases in the price of consumer goods will affect most businesses, sooner or later. For example, if you operate a restaurant, spikes… Read more ›

  There’s a world of tax difference between repairs to real estate property and capital improvements. And it’s not just semantics. The characterization could result in an increase or decrease of thousands of dollars on your tax return. Basic premise: Repairs are currently deductible in full and can be used to offset the tax from rental income. On the other hand, improvements must be written off over a period of years. It takes 27.5 years to write off improvements for… Read more ›

  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 ›

  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 ›

  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 ›

  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 ›

  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 ›

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 ›

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 ›