Since the inauguration, it appeared that the Net Investment Income Tax (NIIT), otherwise known as the 3.8% Medicare Surtax, which passed as part of the Affordable Care Act, was going to disappear. However, with the gridlock in Congress and the failure to repeal and replace Obamacare, it now seems that the NIIT is here to stay, at least for now.
Given the failure to repeal and replace, it is still relevant to consider passive activity rules in connection with the NIIT. » Read More
The New Jersey Supreme Court last week dragged residential real estate contracts out of the dark ages when it ruled that an attorney’s notice of disapproval of a real estate contract may be transmitted by fax, e-mail, personal delivery, or overnight mail with proof of delivery. Noticeably absent from the modes of acceptable notice is that hoary method of reaching out and touching someone: the telegram.» Read More
It is common for real estate to be held in a limited liability company (LLC) for limited liability protection, management, privacy reasons, and for tax purposes. Single member LLCs are generally disregarded for income tax purposes and multi-member real estate LLCs are generally taxed as partnerships, which allows for a flow-through and a single level of income taxation at the member level. » Read More
A recent New Jersey Tax Court opinion highlighted the need for expert witnesses to verify the integrity and accuracy of the market data that forms the basis their opinions; otherwise, the opinions are entitled to little weight. In VBV Realty LLC v. Scotch Plains Township, plaintiff’s appraiser employed the income capitalization and sales comparison approaches to derive an opinion of value for the subject property as of the respective valuation dates.» Read More
The post below was co-authored by Jeffrey M. Casaletto.
While we watch the new U.S. administration target, for better or for worse, EPA’s budget and jurisdictional reach, there are signs of the other extremes within New Jersey government. A recently introduced bill, No. A4305, has the potential to pull residential properties into the quagmire of New Jersey’s site remediation program. » Read More
The New Jersey State Police 32nd annual domestic violence offense report of 2014 states that 62,055 domestic violence offenses were reported by the police in 2014. That same report shows that children were involved or were present during 29% of all domestic violence offenses.
Anyone in an abusive relationship can feel trapped not only emotionally, but physically. What can a domestic violence victim who is also a tenant do to get out of the lease and move to a safer location?» Read More
As with anything worth pursuing, the better prepared a landlord is before signing a lease the better off the landlord will be should any difficulty arise during the term of the lease. Below is an outline of items a landlord should address prior to signing a lease as part of due diligence:
- Document the condition of the premises. Take pictures of the entire inside and outside of the property and keep handy any repair invoices.
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The post below is authored by Nicholas F. Pellitta and Andrew D. Linden.
One obvious reason for filing a real estate tax appeal is to obtain a lower assessment on your real property and thereby save significant tax dollars. Another important reason to lower your assessment and taxes is to help maintain the value of the property by making it more marketable to potential buyers.» Read More
Many real estate investors attend “tax sales” and buy up tax sale certificates on properties whose owners are behind on their real estate taxes. Municipalities, in order to generate cash flow, will offer to the public the opportunity to bid in at a tax certificate sale on those properties whose taxes are seriously delinquent. Many certificates, depending on the bidding, will pay an attractive rate of interest, sometimes at or around 18%.» Read More
An easement is a non-possessory interest in the land of another. A prime example would be an easement allowing owner A to travel over owner B’s property in order for owner A to get to his own property. Much has been written about how easements are created (either expressly or by implication). Of equal importance, however, is how easements are terminated.» Read More