CXRE » tax code

Opportunity Zones Changes Benefiting Investors Amid COVID-19

IRS Provides Relief for Opportunity Zone Investors in Light of COVID-19 Pandemic In guidance released in June, the IRS relaxes certain regulations surrounding Qualified Opportunity Zone (QOZ) investments and Qualified Opportunity Funds (QOF). The new guidelines provide relief for CRE investors in five important ways: The 180-day period for investors to reinvest in QOFs (allowing for commercial real estate tax deferral on capital gains) has been extended to December 31, 2020. Investors and QOFs will be granted reasonable cause relief if they fail to meet the 90% investment standard in 2020. “Reasonable cause relief” refers to the national emergency declared in all 50 states because of COVID-19. Suspends the requirement for a project to be “substantially improved” within a 30-month period for QOFs of Qualified Opportunity Zone Businesses (QOZBs) that purchased properties under the original Opportunity Zone rules. Grants an additional 24 months to the safe harbor period if a QOZB meets working capital safe […]

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How Are the Tax Code Changes for 2020 Impacting Real Estate Investors?

As the saying goes, death and taxes are the only two certain things in life. For real estate investors and owners, taxes are an unavoidable part of life. In addition, tax code changes are also inevitable. Under the Tax Cuts and Jobs Act, commercial real estate owners and investors have several new options. Here, we’re examining the TCJA and Texas tax code. The Tax Cuts and Jobs Act A commercial real estate investment broker is expected to stay on top of all 2020 tax code changes to best advise their clients. However, if you own a Houston commercial real estate investment, you should also stay current on tax laws and code changes. Not being aware of tax code changes could hurt you in the long run. You should know both federal and Texas tax code changes to ensure you don’t get caught unaware. The Tax Cuts and Jobs Act: Impact on Commercial Real Estate Following […]

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