In response to buyer and tenant expectations, many owners and developers are now regularly incorporating smart technologies in their projects. But buyers and tenants understandably also have expectations regarding cybersecurity measures. The risks are real, but they can be significantly reduced with forethought and vigilance. (more…)
Depreciation Strategy Using Cost Segregation
By Nikky Ly, Tax & Advisory Manager
ASL Real Estate Group
Imagine you just bought a rental property for $1 million with $200,000 down payment, your CPA says “Congratulations! You are saving over $10,000 in federal tax with this purchase.” Here is the breakdown: (more…)
Proposed Regs Clarify Rehabilitation Credit
The IRS has released proposed regulations regarding changes made to the Internal Revenue Code’s Section 47 rehabilitation tax credit under the Tax Cuts and Jobs Act (TCJA). The regulations address several taxpayer concerns that have arisen in the wake of the law’s passage, including how the credit should be allocated. (more…)
Consolidated Appropriations Act - 3 Provisions for the Real Estate World
Late 2020 saw the enactment of a massive new federal spending law. Much of the media attention focused on the relief related to COVID-19, but the Consolidated Appropriations Act (CAA) also includes some tax-related provisions of particular interest to real estate owners and developers. Here are some tax law changes you should know about. (more…)
Can You Deduct Travel Costs to Monitor Properties? U.S. Tax Court Says Yes, Within Limits
The Internal Revenue Code allows the deduction of “ordinary and necessary” business expenses, including travel expenses while away from home overnight for business. A recent ruling by the U.S. Tax Court is a good reminder that the deduction is subject to some restrictions. (more…)
Dinner’s on Me! Big Changes to Meal and Entertainment Expense Deductions
Players in the real estate industry have long incurred meal and entertainment expenses while conducting business. But in recent years, there’s been some confusion about what’s deductible and what’s not, given that the Tax Cuts and Jobs Act (TCJA) placed some new limits on the meal and expense deduction beginning in 2018. Now the deduction for qualifying meals has temporarily increased to 100%, and some IRS guidance has provided more clarity on the TCJA’s limits.
Tax Considerations for the Sale of Real Estate
By Ivette Carrasco, CPA, Tax Manager
ASL Real Estate Group
There are different tax treatments to consider when selling your real estate property. The property can be classified as a primary residence, a real estate rental, an investment property, or a second home/vacation rental. The applicable tax consequences on the sale of a property depends on how the asset was classified in the current and prior tax years. It is important for real estate owners to be aware of the various tax implications that a real estate sale can trigger. (more…)