Real Estate Advisor Law Blog

Real Estate Advisor Law Blog

Category Archives: Tax Issues

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Rehabilitation Historic Tax Credit

Posted in Tax Credit Issues, Tax Issues
On December 30, 2013, the IRS issued Revenue Procedure 2014-12, setting forth a safe harbor for federal historic rehabilitation tax credit (HTC) transactions.  Investors have been skittish about HTC deals ever since the 2012 federal appellate court decision in the Historic Boardwalk Hall case, which disallowed the allocation of HTCs to an investor.  The IRS … Continue Reading

Top 10 Things You Should Know About Historic Tax Credits

Posted in Development Issues, Legislative Update, New Urbanism, Tax Credit Issues, Tax Issues
Earlier this fall, the National Park Service celebrated the 35th anniversary of the popular Federal Preservation Tax Incentives Program, which has helped in the preservation of historic structures across the U.S. and particularly in Ohio with its wealth of historic buildings. Because of the program’s numerous possible benefits and its important role in fueling economic … Continue Reading

65 is the Lucky Number (This Year)

Posted in Tax Issues
Did you turn 65 (or older) during 2013?  Happy Birthday!  Have an AGI over $30,000?   If yes, congratulations, you are among the lucky few in Ohio who may still qualify for the Homestead Exemption!   Under the recently enacted H.B. 59 which established Ohio’s budget for 2014, there are numerous changes coming that will … Continue Reading

Assume You Have Been Served

Posted in Tax Issues
Following the publicized overhaul of the Cuyahoga County Board of Revision, property owners and practitioners alike should be aware of the  Board’s recent changes in procedures regarding hearing notices to Complainants, in addition to the implementation of the Board’s updated Rules of Valuation Procedure (which quietly went into effect  December 2011).   When a property owner … Continue Reading

1099 Reporting Repealed (For Some of You)

Posted in Tax Issues
  Earlier this month, the US Congress voted to repeal certain new 1099 reporting requirements that had many smaller landlords in this country crying foul. In essence, expanded 1099 reporting requirements were to take place under the health care reform laws in an effort to raise underreported income. The net effect would have been to … Continue Reading

Another Reason To Consider a Flat Tax

Posted in Leasing Issues, Retail Industry Issues, Tax Issues
Landlord’s have gone to fixed CAM to reduce administrative expenses and disputes with their tenants. The government could accomplish the same by going to a flat tax – no need for complicated tax regulations that create unintended consequences; no need for intrusive audits where the government is at odds with its constituents; in fact maybe … Continue Reading

Ohio Housing Council Issues Alert That Sales Tax Must Be Listed Separately on Invoices for Taxable Services

Posted in Tax Issues
The Ohio Housing Council (the "Council") recently issued the following alert: "Sales tax must be listed separately on invoices or the buyer may be charged by the State of Ohio for the tax."  According to the Council, the State of Ohio has been assessing sales tax and penalties to contractors and property management companies for … Continue Reading

Sales Tax Alert

Posted in General Business Issues, Legislative Update, Property Management Issues, Tax Issues
The Ohio Department of Taxation has been enforcing the obligation to pay sales taxes by contractors and property managers for services received when the invoices do not separately identify sales tax as a specific line item.  Look at all of the invoices received for any services contracted for and make sure that sales taxes are separately … Continue Reading

ELIMINATING OFF-BALANCE-SHEET ACCOUNTING OF LEASES

Posted in Finance Issues, Leasing Issues, Real Estate Tools, Retail Industry Issues, Tax Issues
  Remember Enron and off-balance-sheet accounting scandals? The efforts to clean up these accounting practices are still in the works and are about to hit the world of commercial real estate—arguably at the worst possible time. The Financial Accounting Standards Board (FASB) (which is endowed with the power to decide U.S. generally accepted accounting principles) and its … Continue Reading

Falling Property Values in Cuyahoga County

Posted in Finance Issues, Legislative Update, Tax Issues
How low will they go? Bending to market pressures, Cuyahoga County Auditor Frank Russo recently announced that the County’s 2009 valuation update will likely result in significant decreases in the County’s assessed value of residential homes – with an 8% average reduction across the County.      The media reports note that the State intends to … Continue Reading

The Ohio Supreme Court Clarifies the Effect of Low-Income Housing Tax Credit Restrictions on the Tax Value of Real Property

Posted in Legislative Update, Tax Credit Issues, Tax Issues
 In Woda Ivy Glen Limited Partnership v. Fayette County Board of Revision (2009), 121 Ohio St.3d 175, the Supreme Court of Ohio considered whether restrictions on real property resulting from participation in the federal low-income housing tax credit program should be taken into account when appraising the property for real estate tax purposes.  The real … Continue Reading

You Did What With My Money?!

Posted in Bankruptcy/Creditor's Rights Issues, Litigation Issues, Tax Issues, Title Insurance
               On November 26, 2008, LandAmerica Financial Group, Inc. (“LandAmerica”) and its affiliate, LandAmerica 1031 Exchange Services, Inc. (“LES”) filed for Chapter 11 protection from creditors.  LES abruptly ceased its 1031 exchange intermediary business two days prior to the bankruptcy filing and LandAmerica sold its Lawyers Title and Commonwealth Title … Continue Reading

Bankruptcy Court Refuses to Modify Interest Rate on Ohio Tax Certificates

Posted in Bankruptcy/Creditor's Rights Issues, Tax Issues
In In re Cortner, decided February 4, 2009, the Bankruptcy Court for the Southern District of Ohio held that an Ohio property tax certificate holder was entitled to receive the auction-established rate of interest on its certificate, rather than a reduced, court-determined rate. The creditor held several tax certificates, purchased at auction as described in the … Continue Reading

Fact Check: Is Your Property Correctly Valued?

Posted in Tax Issues
Many counties in Ohio, Hamilton and Franklin included, have just completed their triennial valuation of real property. In this day and age of falling real estate values and 401(k) balances, saving money is on everyone’s mind. That makes today a good day to review the Auditor’s new value of your property and ask yourself, “Am … Continue Reading
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