In a significant case, homebuilders that want to realize income under the completed contract accounting method based on an entire development won a victory. However, the IRS recently responded by announcing that it generally wouldn't follow the decision in cases involving other taxpayers. The U.S. Court of Appeals for the Ninth Circuit upheld a lower [...]
Reporting income from rental properties may seem straightforward, but that’s not always the case. The IRS definition of rental income may be broader than property owners realize. Such misunderstandings could prove costly if uncovered by an IRS audit. What is Rental Income? Rental income is any payment you receive for the use or occupation of [...]
Did you know that the estate of director John Hughes donated the family’s Illinois mansion to a nonprofit hospital? After allowing another charity to use the home for a fundraising event, the hospital sold the home and used the proceeds to expand its campus. In this instance, two organizations were able to enjoy this gift. [...]
Many cities and towns use a simple formula involving the capitalization, or “cap rate” to calculate property tax assessments. The cap rate is determined by dividing the property’s net operating income by its sales cost.
Gumbiner Savett Inc. has been working with the construction industry since we opened our doors in 1950. I have seen many ups and downs in the industry throughout the years and in these uncertain economic times, many construction projects have been put on hold — sometimes indefinitely and other times for a relatively short duration. If you find yourself in such a predicament, here are four steps to stopping and restarting a project effectively:
Are you considering refinancing your home mortgage? Are you aware that a refinance may impact your taxes? The choices you make in refinancing your mortgage could affect your taxes for years to come. This is what you need to know.
Real estate markets have rebounded to near pre-recession levels. This is good news, but as property values increase, so do potential taxable gains that would be realized when selling property.
Rick Parent, Executive Vice President at Gumbiner Savett Inc., and co-chair of our Real Estate Department published an article titled, Operating Expenses vs. Capital Costs: Five Steps to Audit Ready Records in 2011 that still holds true today. The entire article appears in Commercial Property Executive. Minimize Controversy by Keeping Audit-Ready Records You may manage the best [...]
Business owners have lots of questions when it comes to deciding whether to expense costs or capitalize fixed assets, such as: Can I expense a laptop computer that I purchased for $699 in the current year? What qualifies as standby emergency spare parts, and can I capitalize them for tax purposes? Can I use the [...]
The IRS has released its final regulations on the tax treatment of expenditures related to tangible property. The regulations provide guidance on how to comply with Sections 162 and 263 of the Internal Revenue Code, which require the capitalization of amounts paid to acquire, produce or improve tangible property but allow amounts for incidental repairs [...]