When tenants default, landlords and the IRS may end up in court

Article Abstract:

The Internal Revenue Service (IRS), using historic court cases as precedent, agrees that a landlord can write off uncollectable rent as a bad debt. The IRS is strict in its interpretation of 'uncollectable,' however, and frequently the very efforts that landlords take to get the rent paid can be used against them. Attempts to obtain the rent must be made in the early stages. The landlord or tax manager should know when to stop trying to collect and when to claim the writeoff.

Finance, taxation, & monetary policy, Column, Accounting and auditing, Landlord and tenant, Landlord-tenant relations, Rental housing, Rents (Property)

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Demolishing tax deductions

Article Abstract:

Land is not usually held to be depreciable and the purchase price of land with improvements is allocated to the land. Prior to 1984 purchase of a building with the plan to demolish allocated the cost to the land. Subsequent intent to demolish allocated cost between land and building. Section 280B, enacted by Congress in 1984, changed the tax deduction rules in regard to intent, economic value, and demolition.

Tax Law, Analysis, Buildings, Salvage (Wastes)

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Asbestos removal costs: the Congress giveth and taketh away

Article Abstract:

Section 198 of the Internal Revenue Code seems to give property owners the right to deduct the costs of asbestos removal, but that is true only for "qualified" properties, and most US properties do not qualify for the deduction. The deduction is available to owners of qualified properties, but in order to take advantage of the deduction, those owners must conform to daunting rules.

Corporate Tax Deductions & Exemptions, Real Estate, Real Estate and Rental and Leasing, Finance, Corporate taxes, Real estate industry, Asbestos removal

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