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
- Everyone Wants Apartments
- Taxes And Exchanges
- Controlling Property With The Least Expense
Of the housing starts and new building permits in recent quarters, apartments outnumbered single-family homes. The demand for rentals remains very strong. Owners of foreclosed homes have added to the demand, moving from homes to apartments. Although most people favor detached home ownership, many in the population cannot afford a single-family home.
A new buyer of apartments must think “management”…..
Q. We are making a tax deferred exchange of our commercial property up into a large apartment property. The apartments have some deferred maintenance so we would like to take some cash – about $40,000 – out of the transaction for some upgrades. My accountant now tells me that any money taken out of the transaction will be taxable to me. Is this true?….
The Purchase-Option
A purchase-option contract lets the buyer-optionee purchase a property at a specific price within a certain period of time. If the option is exercised, a closing is held and the property is purchased at the price previously agreed upon. There is no legal obligation to buy the property. But, if the optionee does not exercise the option, the deposit paid to the seller-optionor is forfeited……
