Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Is Your TIC Client a Candidate for Conversion to DST?
Under existing IRS guidance, taxpayers disposing of real estate may invest in real property owned through a tenancy in common (TIC) or a Delaware Statutory Trust (DST) as part of a qualifying tax-deferred like-kind exchange, so long as the TIC or DST arrangement meets certain requirements. Many commercial loans financing TIC arrangements are reaching maturity. As a result of the crash of the real estate market in 2008, and certain features of TIC arrangements that may make them less attractive to lenders, some TICs may face difficultly in refinancing. In such cases, one option for dealing with refinancing issues may be to convert the TIC to a DST. This article explains the reasons converting to a DST may facilitate a refinancing and discusses factors to keep in mind when considering the conversion of a TIC to a DST, most notably, for purposes of this article, certain leasing limitations.
Background
Section 1031 of the Internal Revenue Code provides that a taxpayer does not recognize gain or loss for income tax purposes if property held for productive use in a trade or business or for investment is exchanged solely for property of a like-kind which is to be held for productive use in a trade or business or for investment. Thus, like-kind exchanges under Section 1031 allow taxpayers to defer recognition of gain on the disposition of real property if they acquire other real property in a like-kind exchange that satisfies the requirements of Section 1031.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?