2A — April 13 - 26, 2018 — M id A tlantic
Real Estate Journal
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BP
TERMS: BP Deposit: $20,000 due at time of sale. Cash, certified funds, personal/ business check w/ ID. 30-day settlement. 10% BP. Broker co-op invited. See website for full terms & conditions. *Sale on Premises. Auctioneer -Charles Parrish L# A-351. Mobile Home Park located on +/- 3.61 acres, 34 units, 20 leased, 11 spaces vacant, 1 is renovated & for sale, & 1 home w/ 2 apts needs renovation. Long time manager/tenant lives in Park. Current gross income: +/- $104K/yr. Public water & sewer. All units have separate elec. meters. Potential gross income: $171K/ yr after rehab of home w/ 2 apts & renting all spaces. Study plans for bridge from Baltimore to Kent County. Sold AS-IS. Gopal Hariani 410-977-9390 CUSTOM WOOD PLAQUES SHOWCASE YOUR BUSINESS ACCOLADES & PUBLICITY 410-426-2622 AUCTION BROKERS TM A C HARLES P ARRISH C OMPANY www.AuctionBrokers.net 5656 C i rc le Park Dr, Rock Hal l , MD 21661 t H u r s d a y , a p r i l 2 6 t H @ 1 p m P U B L I C R E A L E S TAT E AUC T I ON k e n t c o u n t y aBsolute auction over $500k!
Mid Atlantic Real Estate Journal
Mid Atlantic R eal E state J ournal Publisher, Conference Producer ......................................Linda Christman AVP, Conference Producer . .................................................Lea Christman Associate Publisher ................................................................Steve Kelley Associate Publisher .................................................................. Kim Brunet Associate Publisher ............................................................ Miriam Buttrick Senior Editor/Graphic Artist ................................................ Karen Vachon Contributing Columnists ........ .TimMalloy, Barley Snyder; Steve Niggeman, Metro Commercial; Craig Sadowski,Brockerhoff Environmental Services LLC; Mark Scott, Commercial Mortgage Capital; Kevin Shtofman, Deloitte US Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 350 Lincoln St., Suite 1105 Hingham, MA 02043 USPS #22-358 | Vol. 30, Issue 7 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion 781-740-2900 | Fax: 781-740-2929 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
How the Tax Cuts and Jobs Act Will Affect the Real Estate Industry C Tim Malloy ongress enacted the Tax Cuts and Jobs Act in December to provide the most substantial overhaul of the United States tax code in decades. There has been plenty of publicity surrounding the personal income tax effects stemming from the enactment of this act, however, there are a number of other areas of the tax code which are signifi- cantly affected. There are a number of pro- visions in the act that will directly affect the real estate industry: Bonus depreciation. The act will now allow certain taxpayers to elect to treat qualifying property as a de- ductible expense rather than as a capital expenditure. This will allow many business to immediately expense large expenditures made in connec- tion with certain real estate purchases. This particular provision will be phased out as by 2023. Real property asset lives. The act now is intend- ed to provide that qualified
improvements to real estate will have a useful life of 15 years. A technical correction to the lawwill be necessary in order for this piece of the law to actually come into effect. Like-kind exchanges. Generally, tax-free like-kind exchanges have been elimi- nated. However, the like-kind exchange of real estate has been preserved. The impact of this is that upon each pur- chase of real estate the buyer will need to consider what the tax effect is for the tangible personal property associated with the purchase. Business income de- duction. There is a new deduction for business in the amount of 20% of qualifying business income, however this deduction is limited to 50% of the W-2 wages paid by the business or the sum
of 25% of the wages paid plus 2.5% of the unadjusted basis of certain property the busi- ness uses to product qualified business income. Changes for a tax-ex- empt investors. The unre- lated business taxable income rules have been modified significantly in that you can no longer offset the income from one unrelated trade or business with the loss from another. It is possible that the IRS will treat each real estate asset as a separate business, thus losses from one property may not be able to be used to offset income on another property. This can effect nonprofits across the board. Net operating losses. They can no longer be carried back but may only be carried continued on page 14A
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