If you are considering renting a commercial building in California, it is vital to consider the different types of leases that may be available. Each has its advantages and disadvantages based on your circumstances. Therefore, it is essential to read the lease...
As a property investor in California, you may have heard how IRS Section 1031 allows you to exchange properties and defer capital gains taxes. The tax deferment enables you to redirect proceeds fully into a new investment and potentially acquire a higher-value...
From the standpoint of brokers and agents in the sale of real property, it is desirable for escrow to close as soon as possible, in addition to being paid upon close of escrow for services rendered. Unfortunately, issues involving real property law can cause delays, or in some instances, cause escrow not to close at all. While contractual and lender…
It is quite common for a rental property to generate a loss for tax purposes, particularly where there are significant improvements made on a property, or where a property is unoccupied for a period of time. However, there may be some limitations on the amount of rental losses that are deductible in a given year, known as the “at-risk rules” and…
A life estate may be an effective estate planning tool when the goals are to preserve a home for elderly parent(s) for Medi-Cal planning purposes, and to allow the elderly parent(s) to retain possession. In the absence of proper Medi-Cal planning, the family home may have to be sold to pay for nursing home care incurred by an elderly parent who…
A married couple buys their first house, and perhaps over the years, bigger houses with all the trimmings suitable for raising a family. What is the significance of how they hold title on their grant deeds? The short answer is that there are estate planning and tax consequences in how title is held. If the couple (or an individual for…
For most people and small businesses, transactions involving real property are often the most substantial transactions that they will experience over the course of their lives. When you sell real estate for less than you paid for it, you might feel embarrassment that discourages you from reporting your loss to the IRS. As a taxpayer, you must disclose all substantial…
Taxes are rarely simple. Many taxpayers turn to tax attorneys and other experts when filing their taxes to help them get it right. Nobody wants to file inaccurate taxes and possibly be hit with penalties. However, everybody wants to maximize their deductions to minimize the amount of money they owe to the government. Property taxes in California, and many other…