Real Estate Rental and Leasing

When a corporation purchases real estate property it is crucial to optimize the tax benefits of ownership as well as ensure the correct valuation which will have a tax impact going forward relative to taxation, transfers, and financing. In handling your real estate rental and leasing transactions, we address every facet of the tax and financial issues thoroughly whether it be passive loss rules, depreciation and accelerated cost recovery, state documentary tax and recording cost issues, or at-risk and basis issues. My team represents your interests with mortgage lenders, appraisers, and zoning authorities if necessary. Whether your firm is very involved in real estate development or your company is purchasing just a single property for its own use or rental, I will work with your team to bring about the right outcome.

Related Media

How to Decide if a Rental Property’s Sale Price is Fair:

“…first estimate the return you could get on the investment”, says Brooklyn Law School real estate professor David Reiss.  “You can get that by calculating the building’s capitalization (or ‘cap’) rate.”

Here’s the formula:

“Estimate the total rents you’d collect in a year, then subtract your annual costs: property tax, insurance, utilities, 5% plus for maintenance, and 5% for vacancies.  Divide that number by the asking price to get your return: So if you’re netting $70,000 on a $1 million property, your return would be 7%.”– Money Magazine

 

MYTH: 

4% – 10% return is good on any rental property

FACTS: 

“For a fully rented, high-quality building in a prime neighborhood, a reliable 4% – 10% return might be reasonable.  But [for] a rundown building in a borderline neighborhood, you might hold out for 20%.” – David Reiss, Brooklyn Law School real estate professor

The Ultimate Guide to Fair Market Rental

 

a Professional at Adeptus who Specializes
in the Real Estate Rental and Leasing Industry

Jordan Krant

Accountant & Advisor

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Adeptus Partners LLC