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.
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