Real Estate
On March 27, 2023, the Financial Accounting Standards Board (FASB) published narrowly drawn amendments to the lease accounting rules. The updated guidance clarifies issues that are relevant to common control leases, which are rental agreements between businesses that have the same owner. Written vs. verbal leases Accounting Standards Update (ASU) No. 2023-01, Leases (Topic 842)…
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If your business occupies substantial space and needs to increase or move from that space in the future, you should keep the rehabilitation tax credit in mind. This is especially true if you favor historic buildings. The credit is equal to 20% of the qualified rehabilitation expenditures (QREs) for a qualified rehabilitated building that’s also…
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Does your business need real estate to conduct operations? Or does it otherwise hold property and put the title in the name of the business? You may want to rethink this approach. Any short-term benefits may be outweighed by the tax, liability, and estate planning advantages of separating real estate assets from the business. Tax…
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A business or individual might be able to dispose of appreciated real property without being taxed on the gain by exchanging it rather than selling it. You can defer tax on your gain through a “like-kind” or Section 1031 exchange. A like-kind exchange is a swap of real property held for investment or for productive…
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What are the tax consequences of selling property used in your trade or business? There are many rules that can potentially apply to the sale of business property. To simplify the discussion, let’s assume that the property you want to sell is land or depreciable property used in your business and held by you for…
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The IRS released Notice 2020-58 which provides relief to taxpayers in satisfying the substantial rehabilitation test due to the Coronavirus pandemic. In order to qualify a building for the rehabilitation credit, projects must meet the “substantial rehabilitation test” within a 24- or 60-month period for determining whether the rehabilitation work is satisfactory. The relief allows…
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