RENTAL INCOME: THERE’S MORE TO IT THAN JUST COLLECTING RENT CHECKS
Monday, May 08
Payment for the occupancy of real estate is includable in the landlord’s gross income as rents. Generally, rents are reportable by the landlord in the year received or accrued, depending upon whether the landlord uses the cash or accrual method of accounting. What constitutes rent is not always o...
CONSIDER CONVERTING TO AN S CORPORATION TO AVOID TAXES
Monday, May 08
For closely held corporations still taxed as C corporations, the opportunities to avoid future taxes should be considered.When converting a C corporation to an S corporation there are a number of tax issues that must be addressed.C corporation vs. S corporation tax ratesA C corporation is taxed o...
REAL ESTATE TRENDS – FOREIGN SELLERS
Monday, May 08
There have been continued international capital inflows into U.S. real estate assets and the trend is expected to grow. Political uncertainty and global economic factors continue to drive foreign money into the United States, long considered a safe haven.The U.S. property market is the most stabl...
WILL YOUR TAXABLE GAIN BE CALCULATED PROPERLY?
Tuesday, January 31
The rules for basis, or the value of an asset used for computing tax gain or loss when an asset is sold or transferred, can be complicated. Here’s what you need to know.Background on BasisWhen a taxpayer sells an asset, such as shares of stock, capital gains tax may be owed on the difference betw...
WHY DO INVESTORS WANT TO PARTICIPATE IN ZERO CASH FLOW DEALS?
Monday, January 30
Hint: it’s about deferring taxesMost zero cash flow Triple Net Lease (“NNN”) investments have two components. First, you purchase a high quality NNN investment with a long-term lease and a tenant with a high credit rating. Next, you obtain zero cash flow financing, where the rents from the tenant...
HOW TO RUIN A LIKE-KIND EXCHANGE
Thursday, January 26
Recently, I had a taxpayer call me regarding the sale of a rental property. The taxpayer sold the property for approximately $500,000 and there was approximately $100,000 of tax basis remaining after depreciation. The combined federal and state tax exposure was almost $100,000.The taxpayer indica...