What is a Mechanic’s Lien? A mechanic’s lien in California is a legal tool that guarantees payment to builders, contractors,...

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 carefully. Gross lease Sometimes called a net lease, with a gross lease, the tenant pays the base rent and utilities. The owner takes care of maintenance costs, insurance and real estate taxes. These leases, often in bu

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 property. However, Section 1031 insists that the properties being exchanged fit the definition of “like-kind.” Examples of like-kind properties The properties being exchanged do not have to be identical. To complete a 1

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 financing issues are common reasons why some escrows fail to close, real property issues are another common cause for concern. T

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 “passive activity limits” in the real estate world. At-Risk Rules for Real Property and Real Estate The at-risk rules can be very te

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 receives just a few months of nursing home care. A life estate is one of several options to consider in efforts to preserve the famil

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 that matter) has a revocable living trust, they want title to vest in their names as trustees of the trust. This will ensure that the real prop

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 real estate transactions in the appropriate tax filings, even if you lose money on that transaction. However,

Taxes are rarely simple. Many taxpayers turn to tax attorneys and other experts to help them get it right when filing their taxes. Nobody...