This discussion highlights the treatment of an “electing real property trade or business” for purposes of the interest expense deduction limitation of Sec. 163(j).
Sec. 856(n)(1)(a) specifies that passive foreign exchange gain (as defined in Sec. 856(n)(3)) for any tax year is not gross income for purposes of Sec. 856(c)(2).
The TCJA created an incentive program that allows a taxpayer to elect to exclude from gross income capital gain if it is properly reinvested in a qualified opportunity zone.
The TCJA has given a windfall benefit to foreign investors and developers in U.S. real estate due to the drop in the corporate tax rate from 35% to 21%.
Shareholders can reap several benefits by leasing property to their corporation instead of transferring ownership to the company.
Income from receipt of carbon sequestration credits relating to timberlands is qualifying REIT income
The IRS ruled it would consider income recognized by a REIT in connection with the receipt of carbon sequestration credits to be income qualifying the taxpayer to be a REIT.
Safe harbor eliminates need for private letter ruling for some REIT and RIC distributions of stock and cash
The IRS established a safe harbor allowing distributions of stock to be treated as a distribution of property under Secs. 301 and 305(b) for publicly offered REITs or publicly owned RICs, as long as certain conditions are met.
The IRS issued final regulations clarifying the definition of real property for purposes of the REIT provisions.
Real property developed and held by a taxpayer for lease in its leasing business is “real property used in a trade or business.”
Recently issued advice clarifies some of the rules regarding the limitations on the amount of the exclusion.
The PATH Act of 2015 made several amendments to the prohibited transaction safe-harbor test that will apply for sales of property in 2016 and later tax years.
The IRS issued regulations restricting the ability of C corporations to use this method.
The legislation curbs a popular tax planning strategy by severely restricting the application of tax-free spinoff treatment.
Properly planning for a real estate transaction is imperative to lowering tax expenses and increasing returns for investors.
One way to plan for the tax treatment of tenant allowances is to use the qualified-lessee-construction-allowance safe harbor provided by Sec. 110; however, proceed with caution.
This item explores the challenges taxpayers have historically faced when contemplating a Sec. 355 transaction that involves a REIT holding owner-occupied real estate. It also examines a potential active trade or business planning opportunity brought to light by a recent private letter ruling.
The IRS issued final regulations that provide guidance on the recognition of built-in gain in certain transfers of property from a C corporation to a RIC or REIT.
This item discusses the distinction between residential and nonresidential property, depreciation, and the application of the change-in-use regulations if a rental property changes from residential use to nonresidential or vice versa.
Tax professionals may be in the best position to support their clients or company in identifying LEED certification costs and determining the appropriate tax treatment as either a current-period expense or a capital expenditure.
The IRS ruled that, after a restructuring transaction, an eligible independent contractor will continue to be treated as managing and operating a hotel on behalf of a taxable REIT subsidiary for purposes of Sec. 856(d)(8)(B).