Real Estate Investor or Dealer? Your Tax Treatment Turns on It

In a perfect world, taxpayers who own real estate would receive capital gains treatment when they sell the property at a gain and ordinary loss treatment when they incur a loss on the sale. In the real world, though, the tax treatment will turn on the determination of whether a taxpayer is a dealer or […]

Delaware Statutory Trusts: Are They Right for You?

Both established real estate investors and those interested in dipping their toes into the commercial real estate pool increasingly are considering acquiring interests in Delaware statutory trusts (DSTs). While these vehicles come with several potential benefits, they are not for everyone. Here is what you need to know. How DSTs Work When you invest in […]

How to Make Your Property as Profitable as Possible

2020 has been unlike any other year. Commercial real estate investors have struggled with decreased market values — or the threat of declining values. In these uncertain times, ask yourself three questions to help maintain profits and preserve market value. Can You Trim Expenses? The value of commercial real estate is usually a function of net […]

Related Parties’ Property Exchange Does Not Qualify as Like-Kind

Like-kind exchanges under Internal Revenue Code Section 1031 provide a valuable tool for taxpayers to defer taxes on capital gains. The exchanges are subject to some strict rules that are intended to prevent tax avoidance scams. In a recent U.S. Tax Court case, the parties to a like-kind exchange ran into one of those restrictions […]

Using Cost Segregation Studies for Like-Kind Exchanges

Cost segregation studies have been utilized by many property owners to take advantage of accelerated depreciation methods, including bonus depreciation and Internal Revenue Code Section 179 expense deductions. Accelerated first-year deductions do not change the total amount of deductions over an asset’s useful life, but they do change the timing of deductions. This lowers taxes and generates extra cash flow in the year an asset is placed in service.

Documentation Matters for Real Estate Professional Exception

Most people would not think that a dentist would qualify as a real estate professional who is allowed to deduct rental real estate losses. The IRS thought the same thing. Fortunately for one dentist who also operated a real estate business, the U.S. Tax Court found that he qualified for the real estate professional exception, based largely on his extensive documentation of the hours he had spent.

Crossing That Bridge: Understanding the Pros and Cons of Bridge Loans

Investors and home buyers generally use bridge loans until they can secure long-term financing. As with any form of financing, there are advantages and disadvantages. This article summarizes what exactly bridge loans entail, and then delves in to the pros and cons of this type of financing.

Properly Structuring a Like-Kind Exchange

How you structure like-kind exchanges can result in very different outcomes. Multiple properties sold and relinquished does not always mean multiple deferred exchanges. This blog will provide various considerations as to how to properly structure a like-kind exchange.

Is a Bridge Loan Right for Me?

As the real estate market rebounds, bridge loans can provide an interim financing option for investors and developers until they are able to secure long-term financing. While such loans provide several benefits, they also come with some disadvantages worth weighing before jumping into the loan. This blog discusses the ins and outs of bridge loans.

A Budding Valuation Consideration: Explore the World of Green Building Features

With sustainability becoming more common in both residential and commercial real estate, appraisers are increasingly asked to weigh in on buildings with green features. While green valuations have not yet come fully into bloom, the seeds have clearly been planted for environment-related features to affect property value. This article discusses why green matters and lists factors that valuators can consider when appraising residential properties with green features.

When Not-For-Profits and For-Profits Unite

Joint ventures can provide many opportunities for not-for-profit organizations. First of all, linking up with a corporation can be a great branding tool. People put more trust into organizations that are associated with a “brand name,” and investors may be more willing to provide support. Corporations may have greater access to resources and can help the not-for-profit accomplish fundraising or program-related goals. Additionally, some alliances may even benefit from tax incentives.

Real Estate Group Newsletter – Summer 2023

ORBA’s Real Estate Group’s Newsletter covers the tax liability for owners of homes following the original owner’s passing and discusses the benefits of investing in a “Qualified Opportunity Zone,” or an area that experiences preferential tax treatment to encourage investment.

Real Estate Group Newsletter – Fall 2022

ORBA’s Real Estate Group’s Newsletter covers the non-financial factors that investors use as part of their analysis to screen potential investments and the recent legislation regarding like-kind exchanges.

Real Estate Group Newsletter – Spring 2022

ORBA’s Real Estate Group’s Newsletter examines how developers in urban markets with an oversupply of multifamily housing and/or an undersupply of hotel rooms can benefit from an attractive revenue opportunity and covers the tax rules for short-term rentals.

Real Estate Group Newsletter – Fall 2021

ORBA’s Real Estate Group’s Newsletter details Section 179D’s eligibility and qualifications and summarizes the requirements you should meet to be considered a real estate professional.

Real Estate Group Newsletter – Spring 2021

ORBA’s Real Estate Group’s Newsletter provides a checklist to measure what stage your organization is at in preparing for the workplace of the future and details the financial and non-financial information that lenders consider when evaluating loan applications.

Real Estate Group Newsletter – Summer 2019

Our Real Estate Group’s summer newsletter highlights a recent case involving a real estate developer that illustrates how the IRS — and the U.S. Tax Court — generally see through business tactics that have stretched the definition of “marketing” to claim some questionable federal income tax deductions related to their boating hobby. This newsletter also offers a Qualified Opportunity Zones (QOZs) update and touches on the IRS’s proposed regulations.

Real Estate Group Newsletter – Winter 2019

Our Real Estate Group’s Winter 2019 Newsletter discusses seller financing and if it’s a viable option for investors, as well as insight on the Opportunity Zone tax incentive.

Real Estate Group Newsletter – Fall 2016

ORBA’s Real Estate Group Newsletter is a quarterly publication focused on effective real estate practice management. The Fall 2016 issue includes two articles: “Limited Liability Companies May Have Some Liability Limitations” and “IRC Section 1231: It’s the Best of Both Worlds ”

Real Estate Group Newsletter – Summer 2015

The ORBA Real Estate Newsletter is a quarterly publication focused on effective business management. The Summer 2014 issue includes two articles, Investor vs. Dealer: The Difference is Not Always Black or White and Tax Court Disallows Property Owner’s Bad Debt Deduction.

Real Estate Group Newsletter – Summer 2014

ORBA’s Summer 2014 Real Estate Group Newsletter includes two articles: Leader Certification Program Green Lease is Ready to Roll and What to Expect When You Are Expecting Construction Litigation.

Real Estate Group Newsletter – Fall 2013

The Fall 2013 Real Estate Newsletter features “Buyer Beware” by Michael Kovacs and Christie Gricius. They forewarn prospective buyers of the unexpected costs that can come with purchasing investment property and strategies to avoid them.

Chicago “Cloud Tax” Increase

As part of the 2021 Chicago budget, the Chicago Personal Property Lease Transaction Tax, commonly referred to as the “cloud tax,” has been approved for an increase. Effective January 1, 2021, this Chicago tax will increase from 7.25% to 9%.

ORBA Promotes Dan Newman and Tamara Partridge to Directors

ORBA, one of Chicago’s largest public accounting firms, is pleased to announce that Dan Newman, CPA, MST and Tamara Partridge, CPA, MST have been promoted to Directors effective August 1.