Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
It used to be that when Jonathan Hipp, head of Avison Young's U.S. Net Lease Group, would get a client requesting a zero cash flow property transaction — meaning the rent the buyer receives is equal to what it will pay on its mortgage — it would be for the bonus depreciation benefits that such a deal would offer.
But more recently he has been seeing a lot of clients sitting across from his desk requesting a zero cash flow deal for another reason: they are giving the keys to a property, usually an office building, back to the lender and want to reduce their tax bill as much as possible. "When a lender takes a property back it is not a forgiveness of the debt," he explains. "You have a capital gain and have to pay taxes on that gain," he explains. This is especially significant for owners who've had the property for many years or even decades and have refinanced many times."
As Hipp explains, by performing a 1031 exchange with a zero cash flow deal, the seller can defer the gain they've incurred and probably do so with less cash than paying the taxes owed on the foreclosure.
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
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
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.
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 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.
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?