Real Estate Perspectives - Winter 2019

Real Estate Perspectives


Welcome Here we are at the beginning of a new year, and tax preparation is well underway. We knew this year would hold unprecedented challenges due to the Tax Cuts and Jobs Act, but it turns out the lack of guidance around these new provisions is what is causing the most complications. While final regulations on the 199A deduction were finally released this month, there are still unanswered questions in that area, as well as continued uncertainty around the 163(j) business interest expense limitation and the ever-popular Qualified Opportunity Zones program. Word to the wise: proceed with extra caution when planning and preparing your returns this year. Speaking of Opportunity Zones, if you haven’t visited our resource center dedicated to this new program, make sure to check out , where my colleagues and I are keeping our clients and colleagues updated on the latest guidance, events and developments in this area. Among the changes that are certain this year? The new partnership audit rules, which we have been talking about for a while. Before you file your 2018 partnership returns, refresh your memory on the requirements and the option to elect out – both discussed in the first article of this issue. Up until the day of this publication, my colleagues were updating the Trend Watch article (p. 19) with new developments, such as Amazon rescinding plans to open up a headquarters in Long Island City and new L train plans being announced - and that's just this week alone! This is how quickly things move in our industry, and I expect it to pick up speed from here. Enjoy the ride and, as always, count on Marks Paneth’s Real Estate Group to answer your questions and help you meet any challenges that arise along the way.


2 THE NEW CENTRALIZED PARTNERSHIP Audit Regime Steve D. Brodsky 5 Everyone Loves Talking About QUALIFIED OPPORTUNITY ZONES Michael W. Hurwitz 10 AGGREGATION & NETTING Under Section 199A Anthony Delvalle & Shmuli Fromovitz 14 Project Owner’s Guide to ANALYZING CHANGE ORDERS Georgia Stamelos 16 Guest Perspective: CYBERSE- CURITY ATTACKS in the Real Estate Sector: Business Email Compromise Charly Shugg 19 Trend Watch: Developments in the NYC REAL ESTATE MARKET Erin Kiernan



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