Industry best practices
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Tax Hedging in a Volatile Interest Rate Environment
Real estate companies often add significant debt loads to their balance sheets when acquiring rental properties. In a rising interest rate environment, a real estate company’s profit margins can quickly erode if the company has issued floating rate debt. Conversely, in a declining interest rate environment, a real estate company could suffer adverse P&L consequences […]
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Extending but Still Filing Before the Original Due Date
As a refresher with the upcoming filing due dates approaching, the Bipartisan Budget Act (BBA) partnership audit rules, which affect all partnerships except those that make an annual election out, significantly changes the way partnership tax returns can be adjusted after filing. Under these rules, partnerships are barred from using an amended Form 1065 and […]
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Intersection of Current Tax Legislation and Opportunity Zones?
Opportunity zone legislation has been proposed several times over the past two years, but the current political uncertainty makes its future uncertain.
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Property Tax Appeals
The commercial real estate industry continues to face challenges with high interest rates, looming debt maturities, low transaction volumes, wide bid/offer spreads, and reduced property values. It would be easy to assume that local property tax assessors would take these widely publicized issues into account with their assessments. Jack Schinder says otherwise: “You might […]
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Sale-Leaseback Transaction: An Attractive Option in Today’s Market?
In today’s high interest rate environment, sale-leaseback transactions are becoming more and more common. In this type of transaction, the owner sells a property, then leases it back from the purchaser, which subsequently makes the seller the lessee and the purchaser the lessor. Before we get into the advantages and disadvantages of this type of […]
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The New (and Improved?) IRS Form 8308
Partnerships are required to file IRS Form 8308, Report of a Sale or Exchange of Certain Partnership Interests, to report the sale or exchange by a partner of all or part of a partnership interest where any money or other property received in exchange for the interest is attributable to unrealized receivables or inventory items. […]
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Chicago’s Proposed Documentary Transfer Tax Increase Hits a Roadblock
The Chicago chapter of the Building Owners and Managers Association (BOMA) filed a lawsuit last week to block a referendum vote on Mayor Brandon Johnson’s proposal to increase documentary transfer taxes on real estate property sales. Documentary transfer taxes in Chicago are currently imposed at a flat rate of 0.75% on the sales price of […]
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Our Top 10 Blog Posts of 2023
The end of the year is a great time to reflect on the year that was and to express gratitude for those that made an impact on our lives. On behalf of my colleagues and fellow bloggers, Courtney DeVane, Brian Duren and Jeremy Siebert, we sincerely thank you for your loyal readership and engagement. In […]
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Workforce Housing Tax Credit Introduced in Congress
Earlier this month, Senate Finance Committee Chairman Ron Wyden (D-OR), Senator Dan Sullivan (R-AL), and Representatives Jimmy Panetta (D-CA) and Mike Carey (R-OH) jointly introduced the Workforce Housing Tax Credit (WHTC) Act. The proposal aims to increase the supply of affordable housing for middle-income families, generally deemed as those who earn too much to qualify […]
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The Power of the Real Estate Professional
In general, rental activities are passive activities even if a taxpayer materially participates in them. But, if a taxpayer qualifies as a real estate professional, the rental real estate activities in which the taxpayer materially participates are not considered passive activities. To say it differently, a real estate professional who materially participates in a real […]