This month’s newsletter has just been released!
Check out the latest tips for tenants and users of commercial real estate space.
In this issue
- Postponing Taxes On Real Estate
- Shopping Center Lease Standards
- How To Combine A 1031 Exchange with a Build To Suit
- Important Factors When Choosing The Right Real Estate Investment
The Internal Revenue Code contains two provisions that permit the postponement of tax on the exchange of business or income real estate. Even though the term “tax-free exchange” is commonly used to describe such exchanges, tax merely is deferred on such exchanges until the chain of exchange cycle is broken by a sale. The only exception occurs when the exchange cycle is unbroken throughout the investor’s lifetime, in which case the real estate receives a stepped-up basis upon the death of the taxpayer so that no tax is ever payable on the appreciation to that date……..
When leases for shopping centers are being drafted, they can be more difficult than most other commercial leases. In a shopping center, the owner wants the leases to be as uniform as possible, but knows that each lease must have variations to meet the individual tenant’s particular problems in business and in certain size or shaped spaces…..
There is a great deal of control that can be exercised over the type of property to be received in a tax-free exchange. In one case, the taxpayer designed a brand-new building for himself to replace property to be given by him in exchange. In addition, the taxpayer provided financing for the new building’s construction…….
No single property can fit all of the investment goals and rules an investor has set. Even if the investor tried to build a property to specifications, he would find some things “not quite right.” The investor is, therefore, wise to anticipate problems and have some basic strategies for dealing with them. Here are some suggestions to help the investor devise other approaches to meet special needs……..
