Free Stuff, Human Nature and Cost Segregation
Having recently returned from this year’s ICSC RECON Convention in Las Vegas, I was reminded once again of one those amazing aspects of human nature that never fails to amaze me. There are 30,000...
View ArticleGetting Carried Away with Carried Interest
You may have noticed the recent firestorm that erupted in the ongoing Presidential election campaign. As usual, politics and real estate are intertwined. Mitt Romney’s revelation — one of the world’s...
View ArticleLessons Learned From AmeriSouth vs. Commissioner
A recent tax court memo raised a lot of questions regarding cost segregation. I would like to give you some clarification and perhaps even answer some of those questions. The Facts In 2003, AmeriSouth...
View ArticleEarly Retirement for your Assets
While you may not be able to retire early, certain depreciable assets in your real estate portfolio may be eligible for early retirement. We are all familiar with the concept of a cost-segregation...
View ArticleThe Emperor’s New Reg’s – New IRS Guidelines May Open New Cost Segregation...
In December of 2011, the IRS published new temporary regulations (T.D. 9654) in relation to capital expenditures under Sec.263(a). I bring this topic up now because the American Institute of Certified...
View ArticleIRC §1031 Like-Kind Exchanges and the Mexican Land Trust
Non-Mexicans are not permitted to own land in certain “restricted zones” within Mexico (i.e., within 100 miles of that country’s international borders or within 50 miles of the ocean). Nevertheless,...
View ArticleIRS Guidelines for Determining Capitalization
It has indeed been a tumultuous process for the IRS to finalize its capitalization regulations. A key aspect of the final regulations proposed by the IRS is the classification of tangible property...
View ArticleQualifying for Conservation Easements, Part 1
In the world of commercial real estate, conserving nature goes beyond protecting environmental resources. When structured correctly, conservation easements can ensure renewable resources for future...
View ArticleThe Tax Benefits and Spread of Conservation Easements, Part 2
For some, conservation easements may represent an opportunity to emulate Henry David Thoreau, “I went to the woods because I wished to live deliberately, to front only the essential facts of life”...
View ArticleParking Arrangements in Reverse Exchanges – Part 1
IRC §1031 like-kind exchanges are popular, reliable, IRS-approved transactions that allow taxpayers to defer paying taxes on profits when property (usually real estate) that is held for productive use...
View ArticleParking Arrangements in Reverse Exchanges – Part 2
In the last post, we began to examine the problem of what to do when a taxpayer needs to buy an IRC Section 1031 like-kind exchange replacement property before the relinquished property in that...
View ArticleParking Arrangements in Reverse Exchanges – Part 3
In my last post, we looked at how a safe harbor reverse exchange works under Rev. Proc. 2000-37. Either the relinquished property or the replacement property is “parked” with an “exchange accommodation...
View ArticleParking Arrangements in Construction Exchanges and for Other Purposes
In the last few posts, we looked at how parking arrangements are handled in reverse exchanges. Construction exchanges are in some ways very similar to reverse exchanges. Both involve a parking...
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