CPAs and Advisors with a Growth Agenda

Rental Property Management

U.S. Government Seeks Range of Ideas Regarding Disposition of Real Estate Owned Properties

The Federal Housing Finance Agency ( FHFA ), in consultation with the U.S. Department of the Treasury and the U.S. Department of Housing and Urban Development ( HUD ), has issued a Request for Information (RFI) to solicit ideas for sales, joint ventures, or other strategies to augment and enhance the  Real Estate-Owned (REO) asset disposition programs of Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). The RFI is part of an effort designed to explore alternatives that will facilitate the current and future disposition of REO, improve loss recoveries compared to individual retail REO sales, help stabilize neighborhoods and local home values, and improve the supply of rental housing where feasible and appropriate.. Read More.

Examining the “Taxonomics” of Tenant Allowances

Commercial leases often include certain considerations for negotiated tenant allowances without considering the full tax burden of those considerations. In a recent guest column for  Commercial Property Executive , CB&H’s Bill Becker examines the potential impact of tenant allowances on all parties involved. Tenant allowances can take the form of direct cash payments made by the property owner or an agreement to accept lower rent payments in future years. When an allowance is granted, there are two primary tax issues facing the property owner: 1) if the allowance will be reportable as taxable income in the year it is granted; and 2) whether or not. Read More.

New Law Repeals Expanded 1099 Reporting Requirements

As widely anticipated, President Obama signed into law on April 14th a bill to repeal expanded Form 1099 information reporting requirements for certain business payments and rental property expense payments. The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 specifically repeals: the requirement for businesses, charities, and governmental entities to report payments to companies for merchandise purchased in the aggregate of $600 or more (originally effective for 2012), the requirement for rental property owners to report expense payments in the aggregate of $600 or more (originally effective for 2011), and the requirement for businesses, charities,. Read More.

IRS to Increase Examinations of Tax Returns with Rental Property Activity

A recent report from the Treasury Inspector General for Tax Administration ( TIGTA ) recommended changes to the IRS’s handling of tax returns with rental real estate activity . TIGTA recommended that the IRS rental real estate compliance initiative program (CIP) increase the percentage of examinations made to real estate-related tax returns, particularly those showing losses. TIGTA’s review came in reaction to a 2008 Government Accountability Office ( GAO ) study which found that at least 53 percent of individuals with rental real estate misreported their activity in 2001. The resulting misreported income amounted to an estimated $12.4 billion. TIGTA estimates that, with even a small percentage increase in examinations,. Read More.

Deadline Looms for Some Tax Benefits Under the Small Business Jobs Act

Real estate and construction companies need to take note that some key provisions of the Small Business Jobs Act of 2010 (the Act) will expire by the end of the month. The Act expanded two income tax expensing provisions as an incentive to encourage businesses to purchase certain types of property. In order to take full advantage of these provisions for 2010 calendar tax years, qualified businesses will need to act quickly, placing property in service as soon as December 31, 2010. Bonus Depreciation Retroactive to January 1, 2010, the Act extended the 50-percent first-year bonus depreciation that previously expired at the end of 2009, giving. Read More.

New Small Business Jobs Act Offers Benefits to All Businesses

On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 , or H.R. 5297 (hereafter, “the Act”). Though many of the Act’s provisions focus on small businesses , the new law also contains tax incentives that apply to all businesses as well as new retirement savings incentives for individuals . It is important to note that some of these provisions offer taxpayers a very small window of opportunity, requiring action before the end of the year to take advantage of the savings. INCENTIVES FOR ALL BUSINESSES The Act enhances and extends a number of tax incentives that were originally included in the Economic Stimulus Act of 2008 (“the 2008 Stimulus Act”) and the American Recovery and Reinvestment Act of 2009 (“the. Read More.