Changes to 179D in the Inflation Reduction Act

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.

2023-06-01T14:27:43-04:00May 2, 2023|Categories: Construction and Real Estate, Tax: Business|Tags: , , |

Two-for-One Rate Buydown for Real Estate Developers

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.

2023-03-22T09:50:53-04:00March 23, 2023|Categories: Construction and Real Estate|Tags: |

45L Residential Energy Efficiency Credit: Updates for 2023

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.

2023-02-28T15:13:36-05:00February 23, 2023|Categories: Construction and Real Estate|Tags: , |

New Life for Opportunity Zones?

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.

2022-10-04T13:19:51-04:00October 4, 2022|Categories: Construction and Real Estate, Tax: Business, Tax: Credits & Incentives|Tags: , |

Amid Rising Interest Rates, the Ability to Deduct Interest Expenses Is Lower In 2022

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.

2022-09-22T14:33:52-04:00September 22, 2022|Categories: Construction and Real Estate, Tax: Business, Tax: Individual|Tags: , , , |

How Real Estate Partnerships Can Defer the Tax Impact of Canceled Debt

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.

2022-09-08T16:36:50-04:00September 6, 2022|Categories: Construction and Real Estate|Tags: |

The Impact of Inflation on Commercial Real Estate

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.

2022-04-07T13:48:08-04:00April 7, 2022|Categories: Construction and Real Estate|Tags: , , |

FinCEN Proposed Rule for Real Estate to Combat Money Laundering, Fraud

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.

2022-03-01T14:25:06-05:00March 1, 2022|Categories: Construction and Real Estate|Tags: |

Section 163(j) and Its Impact on Commercial Real Estate

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.

2021-05-13T15:33:35-04:00March 2, 2021|Categories: Construction and Real Estate|Tags: , |

Final Guidance on Business Interest Expense Deduction Limitation Under Section 163(j) in the CARES Act

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.

2022-11-23T14:24:50-05:00October 15, 2020|Categories: PBMares COVID-19 Insights, Tax: Business|Tags: , , |
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