A 1031 exchange (like-kind exchange) is one of the most significant tax advantages available to a real estate investor selling a property with large realized gains. By implementing this tax strategy, it is possible to defer tax payments on the sale of an investment property indefinitely. While like-kind exchanges are common, there are still many complexities to navigate. Given some of the proposed legislative changes put forth by the Biden administration and members of Congress, it may make sense to accelerate transactions into the 2021 tax year.
Autonomous vehicles will bring big changes to New Jersey real estate
As far back as 1957, advertisements in the nation’s leading magazines promised that, “one day, your car may speed along an electric super-highway, its speed and steering automatically controlled by electronic devices embedded in the road.” In the 64 years since then, there has been tremendous technological progress that makes this vision on the brink of becoming reality.
At long last, new development incentives on the horizon in New Jersey
The state’s newly created Aspire Program — the successor to the Economic Redevelopment and Growth (ERG) Grant Program — is an aggressive tax credit program designed to encourage redevelopment projects using incentive awards to reimburse developers for certain project financing gap costs. The Aspire Program includes incentives for the development of both commercial and residential projects.
As with its predecessor, developers must show that the project is in a qualified incentive area, that without the incentive award the redevelopment project is not economically feasible, and that a project financing gap exists. There are additional requirements based on the nature and overall scope of the project.
The Rock Brook Consulting Group: Pushing the limits of design
As we adapt to a new way of living and working amidst a global pandemic, the concept of adaptive reuse has been more attractive than ever. For commercial real estate, the strategy of repurposing empty, ubiquitous office space into profitable areas has been a game changer in reducing low occupancy rates and reviving development deals.
Like-Kind Exchange: What Real Property Can Do For You
The IRS recently released long awaited guidance on Sec. 1031 (like-kind exchanges) and defines what property qualifies for the deferred tax treatment. With the enactment of Tax Cuts and Jobs Act (TCJA), rules provide that no gain or loss is recognized on the sale or exchange of “real property” held in a trade or business or for investment. Prior to the TCJA, “personal property” (like automobiles, machinery or equipment) applied for the deferral. This change means a real estate investor recognizes gain to the extent of money and personal property ineligible for the tax deferral.
Planting the Seed for A Greener New Jersey: The Intersection of Legal Cannabis and Real Estate in the Garden State (Part 2)
The current version of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act, which was passed by the state Legislature on December 17, 2020, provides a framework for legalizing recreational cannabis in the state, including six different classes of licenses to be considered by those looking to enter the cannabis business marketplace. As we discussed in Part I in our series on cannabis, early identification of an ideal region and/or municipality for the proposed licensed premises is critical to success. However, there are a host of other factors and potential snags that an applicant must take into consideration before selecting a location.
Planting the Seed for A Greener New Jersey: The Intersection of Legal Cannabis and Real Estate in the Garden State (Part 1)
Most are undoubtedly aware that, in this past election, New Jersey voters overwhelmingly passed a ballot initiative to legalize the recreational use of cannabis for adults age 21 years or older. Due to our state’s geographic location and dense population, experts predict this marketplace will quickly become a multibillion-dollar industry. As we wait for the cannabis sector to spark up in New Jersey, now more than ever, those interested in joining the industry should evaluate what type of real estate space is best suited for this emerging industry, which will differ based on the type of cannabis license it seeks.
Newark open for business for medical marijuana centers
On May 1, 2019, the City of Newark Municipal Council adopted Ordinance 18-1970 by a 7-0 vote amending several sections of the City’s Zoning Ordinance. This new ordinance permits medical marijuana alternative treatment centers, medical marijuana cultivation facilities, medical marijuana manufacturing facilities, and medical marijuana safety compliance facilities (collectively, the “Medical Marijuana Uses”) as conditional uses in specified zoning districts within the City.
Newark Broad Street’s time to shine
Having started my commercial real estate career in Newark, New Jersey in the late 1980s, I’ve had a front row seat to the evolution of The Brick City, and specifically the strides taken by the community toward enhancing the soul of the downtown area. What was once a city centered largely around Newark Penn station, the region has experienced new growth, particularly northward and westward toward the Broad Street corridor. Additionally, while improvements over the past two decades were slow, but steady, the past five years have seen a more intense ramp up in activity.
