Real Estate Perspectives, July 2021

August 2, 2021

Nonprofit newsletter March 2021

721 Exchange – or UPREIT – an Alternative for Investors if Biden Tax Proposals Limit 1031 ‘Like-Kind’ Exchanges
By Steve Brodsky

While President Biden has stated that his tax proposals would increase taxes for high-net-worth taxpayers, a recent report from the Treasury Department provides details that show a significant impact on real estate investors. This impact stems primarily from limitations on 1031 like-kind exchanges coupled with increased taxes on long-term capital gains.
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New Rules Benefit Foreign Investors in U.S. QOFs, But There’s a Catch
By Al Blecher

Foreign investors in U.S. Qualified Opportunity Funds (QOFs) may soon be able to reduce or eliminate withholding requirements. However, a short window of opportunity to apply for the waiver could discourage all but those with the most substantial gains.
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Under New IRS Guidelines, Certain Partnerships May Request 30-year Depreciation Recovery Period for Residential Rental Property
By Steve Brodsky

New IRS procedures enable taxpayers to change their methods of computing depreciation for certain residential rental property. The options to make these changes are available to partnerships that have residential rental property placed in service prior to 2018 and that have elected to be treated as ERTBs.
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Good News-Bad News: Is the New York Entity Tax Election Worthwhile?
By Jennifer Prendamano

Jennifer Prendamano, Director in the firm's Tax Advisory Services group, highlights the potential disadvantages of the New York State Pass-Through Entity Tax that taxpayers should be aware of, before deciding to elect in.
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