Ryan B. Paul, CPA

As we approach the year-end, many investors take a step back to evaluate their investments to analyze the performance during a given year. Commercial real estate is an attractive investment sector because it can offer significant returns for discerning investors. Learn about the main tool used to determine the profitability and potential success of a commercial real estate investment.

AI is revolutionizing real estate by enhancing property management, market analysis, and transactions. Predictive maintenance and smart building technologies optimize operations, while automated contract management and fraud detection streamline transactions. Despite challenges, AI’s potential to add up to $180 billion in value makes it essential for future growth and innovation.

Artificial Intelligence (AI) is revolutionizing construction by using real-time data and predictive analytics to optimize resources, forecast trends, and prevent setbacks. This technology modernizes project management, quality control, and design processes, giving firms a competitive edge while driving innovation and efficiency.

The real estate industry is evolving due to shifts in remote work, economic pressures, and technological advancements. As demand grows for adaptable living spaces and sustainable practices, the sector faces challenges like high interest rates and labor shortages, prompting strategic innovations for future growth.

The commercial real estate sector is facing a $1.5 trillion debt bubble, posing significant challenges with most debt maturing by the end of 2025. This scenario necessitates strategic and informed responses from stakeholders to mitigate risks and leverage opportunities for adaptation and growth within the industry.

Learn more about the Financial Crimes Enforcement Network (FinCen) proposed new rule requiring certain professionals involved in real estate closings and settlements to report non-financed transfers of residential real estate to legal entities or trusts.

In 2024, commercial real estate trends signal transformation. Opportunities surface in multifamily apartments, industrial properties, and digital infrastructure, yet U.S. regulators warn of financial stability risks tied to rising vacancy rates, declining office property values, and potential economic slowdowns.

GAAs offer a strategic solution for real estate developers facing tax implications of building demolition, particularly concerning Section 280B. However, implementation requires careful consideration of timing, rules, and financial analysis.

The Inflation Reduction Act introduced transferable federal energy tax credits, with guidance for implementation released mid-2023. This clarifies the process for transferring energy-related tax credits and aims to promote growth in the clean energy sector.

New Legacy IRA rules mean that charitable gift annuities are even more valuable as part of a larger tax strategy, especially for taxpayers who want to fulfill philanthropic goals and/or minimize Medicare premiums.

Learn about recent changes to green building tax incentives you can use to recapture more of your investment into sustainable construction and real estate.

The days of manually collecting cash or check payments for rent are gone. From mobile rent payment and maintenance requests to digital property management and automated investment analysis, proptech is set to revolutionize commercial real estate.

Decarbonizing commercial real estate is becoming an industry-wide imperative. Tax incentives in the Inflation Reduction Act give taxpayers several options to offset the cost of energy-efficient upgrades.

The Inflation Reduction Act modified or introduced several energy efficient tax incentives, like the newly created Section 48(e) renewable energy investment tax credit. The base amount can be increased by several optional bonus credits.

Most conversations around lease accounting changes have been about GAAP compliance, so less is known about the tax impact of ASC 842. There are many considerations, and extra calculations may be needed to reconcile the tax and book impact of leases.

Real estate developers can now use a more streamlined approach to capture estimated common improvement costs using the alternative cost accounting method as outlined in new IRS guidance released in January 2023.

179D, a popular energy efficiency tax incentive, has been expanded and upgraded in 2022’s Inflation Reduction Act. From new deduction amounts to prevailing wage requirements, learn about changes to 179D.

Mortgage rates may be trending downward, but they’re still about double what they were a year ago. As potential home buyers are looking for ways to better manage the higher costs of purchasing a home, one option is the 2/1 rate buydown.

The Inflation Reduction Act retroactively reinstated 45L for 2022 and extended the credit through 2032. For the 2022 tax year, projects follow the same eligibility rules. Beginning in January 2023, more stringent energy efficiency requirements will be in place.

Opportunity Zones could be getting an extension with several additional changes. Real estate investors, even those who perhaps didn’t qualify before, will want to take a second look at the second Act for Opportunity Zones.

Amid rising interest rates, the Section 163(j) business interest expense deduction has a more limited impact for real estate companies and other capital-intensive businesses starting in 2022. There are other financing strategies to mitigate the impact of the lower deduction.

Real estate partnerships looking for a way to minimize the tax impact of canceled debt may be able to use qualified real property business indebtedness (QRPBI) to exclude forgiven debt from taxable income.

Commercial real estate is usually known as a hedge against inflation. Is that still the case? There are many variables to consider and investors need to look at the whole picture.

FinCEN issued a request for public comment in advance of a new proposed rule subjecting all-cash real estate transactions to new recordkeeping requirements. If passed, real estate would fall under increased regulatory oversight.

This article explains Section 163(j) and its implications on small businesses, real estate, and manufacturing, including how taxable income and interest expense are defined under Section 163(j), as well as which business activities fall under 163(j) guidance.

Many U.S. companies took advantage of the Paycheck Protection Program, Economic Injury Disaster Assistance Loans, and other funding sources to shore up cash flow amid the coronavirus pandemic.