James Duffy

1 week 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.

2 weeks ago | mondaq.com | James Duffy

Loans that have interest that is not currently paid each yearare treated as having "original issue discount" or OID. These types of loans are common in mezzanine financing which canhave rates ranging from 13-18% with 11-15% payable currently(typically monthly or quarterly)and the remaining interest(referred to a PIK interest) paid at a later date or at maturity. Borrowers can deduct the PIK interest ratably over the term of thenote (even though not paid).

1 month ago | watchuseek.com | James Duffy

#1 · Show off your Seiko Urushi-dial watches here!I just received mine this past weekend and pictures do not do the watch or dial justice. Hope to see more of these amazing JDM Seikos here! See less See more #2 · Congrats! The urushi dial is really something. Photos won't be able to show off its depth and lustre.

1 month ago | mondaq.com | James Duffy

Under the "partial disposition rule," if you replace aroof (or other structural component in a building such as anelevator), you can claim a tax deduction equal to the remaining taxbasis (undepreciated cost) of that roof you replaced. You thencapitalize the cost of the replacement roof, elevator or othercomponent and begin to depreciate it.

2 months ago | mondaq.com | James Duffy

The gain on sale of land that is held primarily for sale tocustomers in the ordinary course of business is taxable at ordinaryincome rates (and not at the more favorable capital gains rates). In addition, those gains may be subject to self-employment tax. Theprospective increase in sale value from subdivision can suddenlybecome much less attractive given the increased tax burden.