Income Taxation of Real Estate Leases: Basics and Beyond

Rental income is any payment you receive for the use or occupation of property. Sounds simple enough, right? But it’s not always taxed as standard income. And, depending on the state you’re in, you may have to pay taxes at both state and federal levels. It’s essential to understand the tax consequences of entering into, operating, and terminating leases. Then there’s section 467, which allows landlords to spread out the recognition of income over the term of the lease instead of all at once. Throw in section 1031 exchanges, land-building splits, DSTs, tenant-in-common agreements, and leasehold improvement exchanges. Now, your client’s seemingly simple decision to collect rental income has turned into a taxation quagmire. In this 60-minute webcast, you will learn what you need to know about the basic and more advanced considerations in real estate lease taxation. Join us and: - Learn how section 467 accounting can affect decisions regarding lease structures - Explore situational uses of leases in section 1031 exchanges, land-building splits, and DSTs - Examine leasehold improvement exchanges All attorneys who work in real estate and tax will benefit from watching this webcast.