James Duffy

2 days ago | mondaq.com | James Duffy

For residential real estate, the cost of a building can bededucted in equal amounts (i.e. "straight linedepreciation") over 27.5 years and, for commercial realestate, over 39 years from the date the property is placed inservice. Through proper planning, you can massively increase yourdepreciation deductions by conducting a cost segregation study ofthe property.

2 weeks ago | mondaq.com | James Duffy

A common problem that arises in real estate partnerships is whenthere is an opportunity to sell and some partners want cash out andsome partners want to defer tax by engaging in a like-kindexchange. The trick is to dispose of the property in a way thatprotects the exchanging partners from any tax on the cash receivedby the partners that want to cash out.

2 weeks ago | openlegalblogarchive.org | James Duffy

A common problem that arises in real estate partnerships is when there is an opportunity to sell and some partners want cash out and some partners want to defer tax by engaging in a like-kind exchange. The trick is to dispose of the property in a way that protects the exchanging partners from any tax on the cash received by the partners that want to cash out.

3 weeks ago | mondaq.com | James Duffy

Assume that you want to make a tax-free exchange of yourapartment building (the "relinquished property") for aretail strip center (the "replacement property"). Youlocated a great deal on a retail center, but only if you close in30 days. However, your buyer for the apartment cannot get itsfinancing for 90 days. By using a "parking transaction" (sometimes referredto as a "reverse like-kind exchange") you may be able toqualify the purchase and sale as a nontaxable exchange.

1 month ago | openlegalblogarchive.org | James Duffy

Assume that you want to make a tax-free exchange of your apartment building (the “relinquished property”) for a retail strip center (the “replacement property”). You located a great deal on a retail center, but only if you close in 30 days. However, your buyer for the apartment cannot get its financing for 90 days.  By using a “parking transaction” (sometimes referred to as a “reverse like-kind exchange”) you may be able to qualify the purchase and sale as a nontaxable exchange.