Investing in Commercial Real Estate in This Environment – Good Idea?

Submitted by D. Saperstone By definition, commercial property is used solely for business purposes. A very broad generalization of “commercial property” but strangely accurate. Shopping mall, offices buildings, apartments, gas stations, hotels and industrial parks are all commercial properties and represent investment opportunities for those investors who can tolerate some degree of risk. Unlike residential development projects which have suffered mightily over the past several years due to the sub-prime lending crisis, commercial investment grade properties have escaped  much of the carnage. Commercial properties have certainly taken a bit of…

New IRS Rules Offer Guidance for Property Owners

Submitted by S. Leonhard In December of 2011, the U.S. Treasury Department and IRS issued temporary regulations on the treatment of amounts paid to acquire, produce, improve or repair tangible property.  The regulations are effective for tax years beginning January 1, 2012. Change in Accounting Method The new regulations included significant changes from prior guidance, and many property owners will have to change their tax accounting methods to conform.  Although the change will result in added administrative expense, a more favorable method of accounting for repairs costs may represent substantial…