News Alerts. Oct. 11, 2013. Afternoon Edition. #RealEstate

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  1. Treasury moves to penalise exploitation of offshore mansion tax loophole | Business | The Guardian

    England:

    The Treasury says the government is moving to clamp down on businesses that try to promote aggressive tax avoidance.

    The super-rich who own mansions through offshore companies face new rules forcing them to declare if they are trying to avoid tax, a Treasury minister will announce.

    Ministers are planning to close a loophole with immediate effect, amid fears wealthy property owners are already trying to find ways round a new annual levy of up to £140,000 on houses owned through companies.

    Many properties in London’s most exclusive developments are owned through companies. Around the time changes were announced, an analysis of apartment owners in the One Hyde Park development showed 50 out of 56 properties sold for a combined total of £1.1bn were owned by offshore companies. Some were based in the British Virgin Islands, the Isle of Man and Guernsey.

    The cheating doesn’t hit legitimate landlords more than others, but it does drive up costs for everyone playing by the legal rules.

    Source … https://www.theguardian.com/business/201 3/oct/10/treasury-offshore-mansion-tax-l oophole


  2. Talk of apartment bubble is premature – Atlanta Business Chronicle

    Cranes are popping up weekly on Atlanta’s skyline as developers rush to build new apartments.

    Any discussion of an apartment bubble is premature based on current market conditions. The occupancy rate is high, rents are rising, and metro Atlanta’s economy is adding jobs. Developments that have delivered early in this cycle are performing well, often exceeding original underwriting projections. Market conditions, however, will inevitably soften as more projects in the pipeline are delivered. A slowdown in rent growth, rising construction costs, and an upward movement in capitalization rates are all threats that could erode developer profit margins.

    Source … https://www.loopnet.com/xnet/mainsite/ne ws/News.aspx?DocID=71556


  3. Cities Turn To Land Banks in Effort to Fight Urban Plight – Auction.com

    This is an excellent overview.

    The NY times recently wrote an article discussing Philadelphia’s plan to vote this fall on establishing a “land bank” purposed to “encourage buyers who are committed to making improvements, instead of speculators, to acquire tax delinquent properties.” A land bank is a quasi-government agency purposed with collecting vacant, foreclosed or underused properties and then redistributing them to developers with the experience, funding and plans to help revitalize neighborhoods that have fallen on tough times. This vacant stock is an overhang on local property values, lead to crime, and can torpedo a local economy. The land banks allow cities to control the revitalization by placing properties in the hands of developers that hold a similar vision to the city and remove as much vacant space from the market as possible.

    Source … https://www.auction.com/blog/cities-turn -to-land-banks-in-effort-to-fight-urban- plight/


  4. LLC Tax Election For Real Estate Investors

    To make an LLC tax election the owner simply must file the appropriate papers with the IRS. What’s the bottom line? The LLC owner can choose how the LLC is taxed.

    LLC Asset Protection

    No matter what LLC tax election is picked, the LLC will have the same asset protection strength, and will operate the same. There is no such thing as a limited liability partnership, or a limited liability corporation. There is only a limited liability company taxed as either a partnership or corporation. An important thing to remember is that your little company is your best tax saver.

    Source … https://www.reiclub.com/realestateblog/l lc-tax-election-for-real-estate-investor s/

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