Year-end tax planning
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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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Bipartisan, Bicameral Tax Proposal in the News
House Ways and Means Committee Chairman Jason Smith (MO – 08) and Senate Finance Committee Chairman Ron Wyden (D – OR) announced a bipartisan, bicameral tax framework that would “promote the financial security of working families, boosts growth and American competitiveness, and strengthens communities and Main Street businesses.” The proposal is titled, “The Tax Relief […]
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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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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 […]
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Reporting Like-Kind Exchanges to California
The State of California generally conforms to Internal Revenue Code Section 1031, as revised by the Tax Cuts and Jobs Act of 2017.1 Like-kind exchanges are reported on California Form 3840 when there is an exchange of one or more California real properties for one or more real properties located outside of California; and if […]
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It’s Year-End…Let’s Find Some Deductions!
Fixed asset reviews and repair and maintenance studies can be effective tools in year-end tax planning. Prior to December 31, 2022, taxpayers were able to benefit from 100% bonus depreciation on certain assets for federal and (possibly) state income tax purposes. The amount of allowable bonus depreciation began to be reduced effective January 1, 2023. […]
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Partnership Mergers
When two or more partnerships combine, the transaction may be considered a termination of each of the partnerships, except to the extent that the partners of one partnership end up with more than 50% ownership of the capital and profits of the resulting partnership. If more than one partnership can meet the test because of […]
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Year-End Reminders for Fund Managers
As year-end approaches, fund managers should prepare for compliance season by working closely with their service providers to ensure delivery dates are met and potential hurdles are anticipated. We recommend that fund managers consider the following: Have open and honest conversations. Engage your fund administration, tax, and assurance teams to set expectations and establish […]
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Planning for Deferred Tax Liabilities on Opportunity Zone Investments
Opportunity zone investors are schedule to recognize significant tax liabilities on deferred gains invested into qualified opportunity funds. Determining strategies to manage or minimize these taxes is a critical action in the OZ toolkit.
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Tax Basis Capital Account Reporting Now Required by California
Beginning with the 2023 tax year, and for every taxable year thereafter, the California Franchise Tax Board (FTB) will require taxpayers who file Form 565 or Form 568 to report its partners’ or members’ capital accounts on the Schedule K-1 using the tax basis method as determined under California law. The FTB instructs taxpayers to […]