I (Abby) am the sole member in an LLC. The sole asset of the LLC is a Rental Property with an adjusted basis for tax purposes of $150,000 and a fair market value of $400,000. My friend, Bob, wishes to purchase a 1/2 interest in the LLC for $200,000 in cash. How should we structure … Continue Reading
Winning The S Corporation Election Many small businesses and start-up entrepreneurs consider using the S corporation as the entity of choice for running their business. The formation, management, and functioning of an S corporation is the same as, or very similar to, the formation of a C corporation. The primary difference between the S corporation … Continue Reading
Part II In Part I of this article, the differences between listing agreements and property management agreements were discussed. A primary difference is that listing agreements are short-term, while property management agreements contemplate a continuing relationship between manager and owner. There are no Real Estate Commission approved forms for property management. Owners and managers routinely … Continue Reading
Do you have customers who, but for a mistaken entry on their credit report, would otherwise qualify for a mortgage? Recognizing the importance of the credit reporting system, and its potential for error, Congress, in 1970, enacted the Fair Credit Reporting Act (Title 15, United States Code, Section 1681 et seq). Among its purposes … Continue Reading
Like-Kind Exchanges of Real Estate Like-kind exchanges under Internal Revenue Code Section 1031 are a popular method used by real estate investors for disposing of one property and acquiring another without recognition of taxable gain. When taxable gain is not recognized in a transaction, income taxes are not required to be paid as a result … Continue Reading
Part I The nature of a listing agreement is different from a property management agreement. With a sale listing, the owner and the broker contemplate a relatively short term relationship which terminates upon the sale of the property. Unless the seller carries financing, neither the seller nor the broker expect to deal with the property, … Continue Reading
With increasing frequency, real property owners are choosing to hold title in trusts. Once you put title into a trust, you don’t want to have problems conveying title out of the trust. You also don’t want creditors of the trustee to be able to lien the property of the trust. Such concerns should be much … Continue Reading
As health care providers compete for patients, they seek locations convenient for patients. This phenomenon has driven clinics, urgent care facilities, and other health care providers into general office and store front retail space Health care providers create special leasing issues. Among other things, health care providers work with chemicals, they produce biomedical waste, their … Continue Reading
The Hidden Dragon of Imputed Depreciation I bought a house in July 1988 for $137,500 and rented it out for ten years. I took deductions for depreciation in tax years 1988 through 1995, but I forgot to take depreciation deductions in 1996 through 1998. My total depreciation deductions for years 1988 through 1995, as … Continue Reading
Co-Author: Amy E. Allison, Esq Question: I am starting my own real estate company and will invest much of my time and money promoting my company. I have hired a graphic artist to design a logo. How can I avoid using someone else’s name? How can I protect against someone taking advantage of the goodwill … Continue Reading
