REVERSE EXCHANGES A reverse exchange is a transaction in which the taxpayer acquires replacement property before selling the relinquished property. This is often done in cold markets where a
DEFINITIONS Taxpayer. The person or entity carrying out the exchange. Relinquished Property. The property being exchanged. Replacement Property. The property being acquired in the exchange. Buyer. The buyer of the
The limited liability company has been the entity of choice in (and everywhere else in the United States) since Hawaii became the fiftieth of the fifty states to enact a
When you think of a condominium you probably imagine a tall building with apartments on every floor. In fact, any property can be submitted to a condominium property regime. Hawaii
Clients often ask whether they can use exchange funds to alter or renovate replacement property. The answer is no! Improvements to real estate are personal property until installed and they
Code Section 1031 has existed since the dawn of the income tax in the original Revenue Acts of the 1920s. It has remained virtually unchanged since its inception in the
Are you in business at premises which are a sublease? That is, does your landlord lease from someone else and sublease to you? If so, did you know that you
The Bad News: The Net Investment Income Tax Code Section 1411 imposed the new “net investment income tax.” The tax is 3.8% of “net investment income” of individuals, estates and
If you are starting a new business one of the first things you will do is to form an entity. There are several choiees of entity and each has its
Section 1031 exchange is a household word among real estate investors. Having written a 250-page book on it I can tell you there is a lot to know. This is
Better Place is a fascinating Israeli company which intended to build and operate battery changing stations for electric cars. Instead of charging a battery they would swap it out. Better
The Taxpayer Relief Act of 2012 (“ATRA”) is a bit of a misnomer because it did not provide relief for higher income taxpayers. This means that the tax benefits of exchanges under
Don't let leasing alligators eat your bottom line! This will explain some of the issues which come up in commercial leases. In the immortal words of the Beatles - I want to hold your hand - through your next lease transaction.