Taxes

President Biden released his official budget proposal including tax plan on March 9, 2023.  As expected, he’s taking a run at sharply rolling back 1031s as he did in PY2022. The President’s [...]

The IRS has issued a disaster relief notice for the state of California relating to the severe winter storms, flooding, and landslides that began January 8, 2023. Counties in which Affected [...]

As we’re getting closer to the end of the year and tax time: just a reminder for those in a 1031 exchange in Florida or North and South Carolina. In the past, I have posted about the only [...]

Convenience Stores – Potential 100 Percent First Year Bonus Depreciation.  Generally single tenant, absolute net. As always, please consult with your tax professional before making any [...]

Treasury, IRS issue final regulations Other guidance on newly qualified business income deduction; Safe harbor enables many rental real estate owners to claim a deduction IR-2019-04, January 18, [...]

I received an email from Steve Rosansky at Peak Exchange regarding possible 1031 extensions in the event of a natural disaster such as what has occurred in the West Valley of Los Angeles and [...]

Year End Commercial Real Estate Closings Just a reminder that if your utilizing section 1031 of the IRS code to defer capital gains taxes, a closing on your down leg (relinquished property) [...]

FIRPTA increases from 10% to 15%. Currently if a foreign person sells United States real estate the buyer is required to withhold 10% of the gross sales price and remit this to the IRS. However [...]

Rule # 1 Both the relinquished property and replacement property must be held for investment purposes or used in a business and be ‘like kind’. Rule # 2 The IRS requires the investor to identify [...]

Since we’re getting into tax season, I’m getting more calls over the last few days regarding the basics of a 1031 delayed or reverse exchange so I thought it best to review some of [...]

This is review and reminder to a post earlier in the year. A 1031 exchanger must complete the acquisition of a replacement property in a 1031 exchange before midnight on the earlier of the 180th [...]

The IRS has issued Proposed Regulations, REG-130507-11, regarding the new 3.8% Medicare tax on net investment income imposed by IRS Section 1411. The proposed regulations affect individuals, [...]

Randyl Drummer from CoStar News reported that after months of negotiations the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) agreed on [...]

There’s a relatively new U. S. Tax Court case Reesink v. Commissioner, (April 23, 2012) T.C. Memo 2012-118, that could be of interest regarding a 1031 exchange. The Reesinks, husband and wife, [...]

This is part four in my series on 1031 exchanges.  Keep in mind that I’m using the current capital gains rate of 15%.  Depending what happens on November 6th, these number may change … [...]

Unfortunately, we may have a much better reason in a few months to do a 1031 exchange when and if the Bush tax cuts expire.  However, there will likely be folks who decide to cash out and sell [...]

This allows investors to use all of the sale proceeds to leverage into more valuable real estate, increase cash flow, diversify into other properties, reduce management or consolidate holdings.  [...]

I’m going to create a series of posts on 1031 exchanges over the next couple of month from the basics, starting with this post to the more complex. First of course is the disclaimer:  always seek [...]

Given that election time is but six months away, I’m hearing a bunch of ‘what if’ discussion from clients, friends and other commercial brokers regarding potential tax ramifications with the [...]

As many of us are aware, unless congress takes action, the top tax rate of dividends will increase from the current 15% to 43.4% next year.   That’s a top ordinary income rate of 39.5% plus the [...]