Real Estate Articles and Updates
Insights on accounting and tax matters that impact real estate companies like yours
Reconsideration of conclusions leads to delay in leases project
The release of a revised exposure draft on lease accounting changes is not expected until the third quarter of 2012. Read more in the March 20, 2012 issue of Insights.
FASB issues proposed guidance on investment property entities
Learn about proposed FASB Accounting Standards Update, Real Estate – Investment Property Entities (Topic 973), which would introduce significant changes to financial reporting for investors in rented real estate, as well as additional presentation and disclosure requirements for investment property entities.
Construction and the economy
Is there light at the end of the tunnel for construction companies? Read John Croy's perception in Construction and the Economy to see what 2012 could bring.
Tax Planning Guide
Our Tax Planning Guide offers topical year-end and year-round tax planning help. Download this guide for an overview on everything from income, investing and charitable giving to retirement and estate planning, all updated with 2010's many tax law changes.
Partnerships with tax-exempt investors face a unique set of tax rules and traps for the unwary
A recent article in Businessweek reported that institutional investors surpassed publicly traded real estate investment trusts as the largest acquirers of domestic office buildings in the first quarter of this year and much of this new capital is coming from investors who are tax-exempt for tax purposes. Learn how partnerships and private equity funds with these types of investors trigger myriad tax rules.
Proposed Accounting for Investment Companies and Investment Properties
Details on FASB's October 2011 issuance of proposed Accounting Standard Update (ASU), Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements.
Impairment Testing of Long-Lived Assets Classified as Held and Used
Best practices on the impairment of long-lived assets other than goodwill.
Late election to aggregate rental real estate interests by real estate professionals
August 2011 - The Internal Revenue Code requires treating each rental real estate interest separately unless an election is made to aggregate the interests.
Property used as service station eligible for 15-year recovery period
August 2011 - The IRS concluded in Chief Counsel Advice 201123001 that a truck service center building did not constitute nonresidential real property with a 39-year recovery period for depreciation purposes, but rather a service station building with a recovery period of 15 years. The IRS's holding highlights the importance of taxpayers determining the primary use of assets when considering the appropriate asset classes and recovery periods.
Frequently asked questions on Bonus Depreciation
In March 2011, the IRS and Treasury issued Rev. Proc. 2011-26 to provide guidance on claiming 50 versus 100 percent bonus depreciation. Although Rev. Proc. 2011-26 overall provides taxpayer-favorable guidance, there are many nuances in the rules that have raised various questions regarding what exactly is eligible for 100 percent bonus depreciation. Fortunately, at the May ABA Tax Section meeting in Washington, D.C., Brandon Carlton, Attorney-Advisor with Treasury, addressed many of these questions. Follow the discussion.