Inside the Current Issue:
Abandoning a Real Estate Project: Ordinary or Capital?
In today’s economy and with struggling real estate prices, a significant tax savings opportunity may be available to real estate investors with projects that are abandoned or significantly restructured. If the taxpayer can prove an abandonment loss, it provides a significant benefit as the taxpayer will be able to claim an ordinary loss even if the property is a capital asset. However, a taxpayer’s ability to claim an ordinary loss is
subject to certain limitations outlined.
American Recovery and Reinvestment Tax Act of 2009: Tax Credit Bonds
With today’s economic state of tight credit markets and ongoing unemployment concerns, these tax credit bonds provide some relief and tax benefits to state and local government agencies as well as construction companies and workers.
Protecting against Potential Environmental Challenge
While prepping the jobsite for the initial construction work of a 15-story condominium, a subcontractor found metal drums containing a multitude of hazardous waste and chemicals.To further exacerbate the situation it was later learned that the hazardous material leaked into subsurface soils causing contamination throughout the project site. Sound familiar?
Tax Issues Common to Troubled Businesses
The new law has special rules for partnerships and other pass-through entities and also may defer future interest deductions on new debts issued in the restructuring.