Category: Real Estate

Do you own real estate that will produce a big capital gain when you sell it? Fortunately, you may be able to realize significant tax benefits by negotiating an installment sale of the property. However, there are several potential tax traps to avoid. How do you qualify for installment sale reporting? It’s relatively easy. All you have to do is arrange to receive payments over at least two tax years. For example, say you contract to sell real estate in December… Read more ›

Today’s technology has made working from home a reality for many people. These individuals and their companies enjoy the benefits of reduced overhead and no commuting hassles. Another bonus: The IRS issued regulations on home sales that provide an unexpected tax bonanza for people who work out of their homes. Under the home sale exclusion law, you can pocket up to $250,000 of tax-free capital gain from a sale of a home ($500,000 for joint filers). To qualify, you must… Read more ›

“Why Effective Cash Flow Management is Crucial for Subcontractors” was originally published in the April 2021 issue of The Contractors Compass (American Subcontractors Association). Click here to view.  A good way to think about cash flow is to see it as your business’ wallet. Cash flow reports are crucial tools for business owners and managers to help them understand where their business’ money is coming and going, and when. Making decisions based on that information is key. Establishing good accounting… Read more ›

Although the novel coronavirus (COVID-19) pandemic has walloped most U.S. businesses, how your business recovers will largely be construction-industry-specific. For example, most construction companies need to address disruptions to project schedules and overseas supply chains. They may need to renegotiate building contracts and find replacements for workers who are no longer available due to travel restrictions. Depending on your niche, the fallout from COVID-19 could last months and possibly even years. Here are some tips on handling five major obstacles… Read more ›

Economic fallout from the COVID-19 crisis will cause many rental real estate properties to run up tax losses in 2020 — and possibly beyond. Here’s a summary of important federal income tax rules for such losses. What You Can Write Off Rental property owners can deduct mortgage interest and real estate taxes. They can also write off all standard operating expenses that go along with owning rental property. Examples include: Utilities, Insurance, Repairs and maintenance, and Care and maintenance of… Read more ›

The U.S. Senate has passed the bipartisan Paycheck Protection Program Flexibility Act of 2020, which loosens several of the Paycheck Protection Program’s (PPP’s) more onerous restrictions regarding loan forgiveness. President Trump has signed the bill into law. The new law follows the May 22, 2020, release of an interim final rule from the U.S. Department of Treasury and the Small Business Administration (SBA) on PPP loan forgiveness requirements. Among other areas, that guidance addresses the calculation of full-time employees and… Read more ›

The IRS has issued new guidance addressing a question that has lingered since the launch of the Paycheck Protection Program (PPP) — whether expenses paid for with forgiven, tax-free PPP loan proceeds are deductible business expenses under Section 162 of the Internal Revenue Code (IRC). The guidance in IRS Notice 2020-32 doesn’t provide the answer borrowers hoped for, but that may yet come. The root of the question The Coronavirus Aid, Relief and Economic Security (CARES) Act created the widely… Read more ›

The Small Business Administration (SBA) has extended the repayment deadline for Payroll Protection Program (PPP) borrowers that wish to take advantage of the “good faith” self-certification of eligibility option. The deadline is now May 14, 2020. Companies that repay their loans by that date preempt the possibility of criminal liability if they’re subsequently found ineligible for PPP loans. The loans are intended to help small businesses with fewer than 500 employees weather the novel coronavirus (COVID-19) pandemic, but some large… Read more ›

Congress and the Trump administration have struck a deal on another piece of legislation, the latest in a series of federal measures intended to provide relief in response to the novel coronavirus (COVID-19) pandemic. The $484 billion legislation, which is being referred to as the Interim Stimulus Plan, amends the Coronavirus Aid, Relief and Economic Security (CARES) Act enacted in late March. Among other things, it provides additional funding to two loan programs designed to help small businesses slammed by… Read more ›

The Senate has approved $320 billion in additional funding for the Paycheck Protection Program, the Small Business Administration’s business relief program that passed as part of the CARES Act on March 27, 2020. The PPP originally received $349 billion in funding to support businesses hurt by the COVID-19 pandemic. Funding quickly ran out however, as a surge in applications for relief and skyrocketing unemployment numbers reflected the significant need. The House of Representatives is expected to pass the legislation on… Read more ›