April 6, 2021

Employee Retention Tax Credit Offers Huge Relief Opportunities for the Construction Industry

The Employee Retention Tax Credit (ERTC) has been a valuable COVID-19 relief option for businesses who faced revenue losses due to ongoing impacts of the pandemic. While some industries were impacted more than others, certain sectors of the construction industry actually expanded in 2020, including homebuilders and industrial contractors. Even if your company performed well overall last year, there could still be an opportunity to claim the ERTC.

Who Qualifies for the ERTC?

Originally part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the ERTC allows businesses to take a credit against payroll taxes in order to help offset some of the business losses due to COVID-19. The original ERTC was only available for businesses who were forced to shut down or whose gross receipts in 2020 were 50% less than the same quarter in 2019. The ERTC has since been expanded, modifying the reduction in revenue by an additional 30%. For 2021, businesses are eligible if gross receipts are less than 80% of the gross receipts for same quarter in the prior year.

Businesses that averaged no more than 100 full-time employees in 2019 qualify for the ERTC in 2020 on wages paid to all employees. For the ERTC in 2021, this employee threshold increases to no more than 500 full-time 2019 employees. Full-time employees are those that work at least 30 hours per week. Union employees are included in the employee count for the credit, but those working part-time (less than 30 hours/week) are not.

How Much Can Businesses Qualify for?

For 2020, eligible employers can take a credit of 50% on qualified wages up to $10,000 paid to employees between March 12, 2020 and January 1, 2021. In 2021, the tax credit is increased to 70% of qualified wages, which are limited to $10,000 per employee per quarter. With the 70%, the maximum ERTC amount available is $7,000 per employee per quarter, for a potential total of $28,000 per employee in 2021. We have seen clients qualify for anywhere from $5,000 to $2.5 million through the ERTC.

How Could My Company Qualify for the ERTC After a Good Revenue Year?

Unlike other industries, construction revenue typically isn’t cyclical, and contractors can have revenue fluctuations that vary from month to month or quarter to quarter depending on projects. To qualify for the ERTC, the business only needs to have a quarter-by-quarter drop in revenue of 50% when comparing a 2020 quarter to 2019, and 20% when comparing a quarter in 2021 to 2019. You can also look back a quarter for the ERTC, so if your company was down 20% in Q4 of 2020 compared to 2019, you would qualify for Q1 of 2021.

ERTC Case Study

In one unique scenario, a taxpayer with a 40% increase in revenue in 2020 vs 2019 overall assumed they would not qualify for the ERTC. When taking a closer look, we discovered their revenue dropped 50% in Q4 of 2020 compared to 2019, making them eligible for the ERTC in Q4 of 2020 and Q1 of 2021. Projected total benefit for this taxpayer exceeds $200,000.

How Can I Take Advantage of the ERTC?

Initially, the CARES Act prohibited employers who had received a PPP loan from also utilizing the ERTC. New laws allow an employer to claim the credit for any wages paid beyond the proceeds of the PPP loan that have been forgiven. Taking advantage of both PPP loan funding and the ERTC is a great way to maximize COVID-19 relief opportunities.

If you discover you qualified for the ERTC in 2020, you can amend your quarterly payroll returns to claim the credit. If you identify that you qualify in advance, you can reduce payroll deposits for 2021 to take advantage of the credit.

Find out if your business is eligible for the Employee Retention Tax Credit in 2020 or 2021.

While the above highlights the opportunity for eligible businesses, please contact an Anders advisor below to discuss your situation and recovery options. Our advisors are closely following COVID-19 relief efforts and will continue to publish insights to keep you informed. Visit our COVID-19 Resource Center for more resources.

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March 9, 2021

Permanent 179D Tax Deduction Incentivizes Energy Efficient Building Improvements

The Consolidations Appropriations Act of 2021 signed into law on December 27, 2020 permanently extended the 179D tax deduction for energy efficient building improvements. This is great news for commercial building owners as they can now take advantage of the 179D tax deduction for energy efficient building upgrades without wondering if and when the deduction will expire. Below we dive into the details to know before taking advantage of the 179D deduction.

BACKGROUND ON 179D AND ELIGIBILITY

The 179D deduction helps incentivize energy efficient construction projects. This deduction was originally created as a temporary measure under the Energy Police Act of 2005 and was extended every year until it expired in 2017. A tax deduction of $1.80 per square foot that reduced the building’s total energy and power cost by 50% or more is available to owners of new or existing buildings who install the following:

  • Interior Lighting
  • Building Envelope
  • Heating/Cooling Ventilation
  • Hot Water Systems

Deductions of $0.60 per square foot are available for situations where expenditures partially qualify by meeting certain target levels or through an interim lighting rule issued by the IRS. For government-owned buildings, this deduction is transferable to the person or company responsible for the energy efficient design. Therefore, architecture and engineering firms that design government owned buildings may also claim this deduction when completing additional requirements.

Under the extender bill of 2019, the deduction is retroactively extended for tax years 2018, 2019 and available for 2020. Qualified buildings placed in service in 2018 and 2019 may be eligible to claim the 179D deduction.

CLAIMING 179D

Eligible building owners can claim the 179D deduction for up to $1.80 per square foot of the entire building for the installation of energy efficient systems into new or existing buildings.

The Anders Real Estate and Construction Group can help determine if your construction project would qualify for the 179D deduction as well as other tax credits and incentives. Contact an Anders advisor below to learn more.

Abigail A. Mabley is a contributor to this post.

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March 2, 2021

How Construction Companies Can Implement a Cybersecurity Strategy

It’s no secret that data breaches are on the rise, regardless of industry or company size. Protecting your business and employees from cybersecurity attacks is a growing concern, especially for small construction companies and contractors. Most construction companies store sensitive project information, including bids, designs and material pricing, on top of their own financial data and employee information, banking records and other confidential information. With all of this information at risk, it’s shocking that on average, 68% of construction companies spend only 1% or less of annual sales on their IT budget, according to JBKnowledge.

Ensuring your company’s data is protected is a daunting task, and requires time, money and resources to stay up on the latest cybersecurity practices. Whether you’re just getting started in the security process, or ready to ramp up your existing strategy, below we cover the necessary pieces to keep your company secure.

Start with the Basics

Starting with the cyber perimeter of your network is a great place to begin the process of securing your company. A few simple steps can make a big difference. Consider implementing:

A Firewall

A properly configured firewall will take you from being an easy target to having a well-protected attack surface. A firewall should be installed by a certified network engineer. You will also want ongoing technical support and an advanced security subscription to keep your firewall up to date against developing threats.

One feature that is specifically beneficial for the real estate and construction industries is the ability to block by country. Consider blocking the countries that you do not do business with and have no reason to allow them to communicate with your organization. For instance, if you are a construction contractor only working on projects in North America why allow any country outside of the United States, Mexico, or Canada to communicate with your network? Blocking this access helps put up an appropriate barrier against cyberattacks in other countries. If you look at where cybersecurity scams and breaches are generated from, the same list of countries show up over and over. Are you blocking those countries or are you allowing them to knock on your virtual door?

A Spam Filter

Over half of all emails sent globally are spam. A spam filter can help protect against phishing emails and malicious links with strategies to take your password and other sensitive information.

There are many reputable spam filters, but not all are created equal. Some require appropriate configuration to make sure the overwhelming majority of malicious emails are blocked. If a spam filter is not configured adequately, malicious emails will make it to inboxes and increase the probability of one being clicked on by an employee and jeopardizing the entire organization. If you have not already, consider adjusting your spam filter to reduce the number of emails making it through.

Reputable Anti-virus

Viruses are getting increasingly more aggressive., but there are anti-virus tools used to fight malicious software including artificial intelligence, automatic updates, self-cleaning mechanisms and real-time scanning. A reputable anti-virus is the most basic protection of all. Please check with your technology provider when assessing whether your current anti-virus strategy is adequate. Anti-virus and anti-malware help protect computers and servers but should be supplemented with other tactics to provide a holistic cybersecurity approach.

Cybersecurity Awareness Training

On average, four out of every 100 employees will click on a malicious link presented to them. A cybersecurity training program can shrink that number and provide best practices on how to recognize threats and what not to click on. Cybersecurity awareness training provides excellent reporting on which employees or groups of employees are causing your organization the most risk. You can evaluate if their cybersecurity awareness improves over time by continued campaigns aimed at changing any bad habits. 

Ramp up Your Security

When you have the basics covered, it’s time to look at more advanced practices to help protect your company’s sensitive data. Consider implementing:

Annual Vulnerability Assessment

This assessment provides critical information about possible vulnerabilities. A simple vulnerability test can identify any areas to improve before implementing a penetration test.

Annual Penetration Test

A third-party organization will attempt to find methods for entering your network and finding valuable data. Annual penetration tests can identify weaknesses to improve upon.

System Information and Event Manager

This service will filter through logs and find particular events for review and potential remediation, such as failed login attempts and malware activity.

Cybersecurity Insurance

Be prepared for an incident with cybersecurity insurance. The cost of a production down situation or breach can be staggering for a business, and cybersecurity insurance can help your business recover from data loss if a breach occurs.

Backup and Disaster Recovery

Backup and disaster recovery can save you from losing valuable data in the event ransomware encrypts your data or if data is destroyed. If you have an incident that encrypts your data or deletes your data, you may be relying on a solid backup platform to get things back online. A disaster recovery plan can shrink the impact caused by a ransomware or data deletion event

Management/CIO Services

With all of the moving parts above, it will require management and coordination. This coordination is not always possible by in-house IT for many reasons. Sometimes providers who run multiple businesses, or even businesses within your peer group may have very valuable strategies to use.

Implementing a cybersecurity strategy takes a significant amount of resources to implement and continuously evaluate the effectiveness as new threats arise. Even a dedicated in-house IT employee will most likely need assistance with such a large specialized task. Anders Technology offers the tools, training and managed IT services necessary to keep your company protected, now and in the future. Contact an Anders advisor below to discuss your specific needs.

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December 29, 2020

Rehabbing a Historic Building? Historic Preservation Tax Credits Can Help

The Historic Preservation Tax Incentives Program works to revitalize communities across the country by offering a tax incentive for the rehabilitation of historic buildings. The program offers a 20% Federal tax credit to private investors who undertake substantial rehabilitation of a historic building that will be used for a business or other income-producing purpose while maintaining the historic character of the property. The 20% rehabilitation credit equals 20% of qualified expenses spent on the approved rehabilitation of a certified historic structure.

How do Historic Preservation Tax Credits work?

Only certified historic structures qualify for Historic Preservation Tax Credits. The National Park Service maintains a list of buildings that are certified as historic. The rehabilitation work must meet the Secretary of the Interior’s standards for rehabilitation, which aim to ensure the historic integrity of the building remains intact.

Taxpayers must complete a three-part application to qualify for the 20% tax credit:

  1. Part 1 presents information about the significance and appearance of the building
  2. Part 2 describes the condition of the building and planned rehabilitation work
  3. Part 3 certifies that the project meets specific standards laid out by the Secretary of the Interior

Do states offer Historic Preservation Tax Credits?

Many states also offer Historic Preservation Tax Credits. An application and approval process is required at the state level, as well. Missouri offers tax credits equal to 25% of qualified expenses of the rehabilitation to approved historic buildings. The Missouri Historic Tax Credits can be carried back 3 years or carried forward 10 years.

Find out how Anders can help with Missouri Historic Tax Credits.

Should I take advantage of Historic Preservation Tax Credits?

Yes, Historic Preservation Tax Credits are a great way for historic real estate owners to lessen their tax burden for rehabilitating or restoring their historic property. If you are considering purchasing or have already purchased a historic building for commercial use, contact an Anders advisor below to take the next steps for qualifying for these tax credits.

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December 1, 2020

Looking to Invest in Real Estate? Consider These 5 Strategies to Get Started

There are many reasons people get into real estate investing, including to help diversify investment portfolios, generate cash flow and hedge against inflation. Real estate investments can also create passive income and offer tax benefits, such as the ability to deduct mortgage interest, real estate taxes and depreciation. While some real estate investment strategies require hands-on management of the property, other options allow investors to own real estate without becoming a landlord. Below are five potential ways to get started investing in real estate.

1. Buy a Rental Property

One way to start investing in real estate is to buy a rental property. The investor would purchase a commercial or residential rental property and serve as the landlord. This type of investment would require more hands-on work than some other options, but it could generate rental income and tax deduction benefits. Depending on their goals, the investor can either hold their property or flip it:

  • Buy and hold real estate – The real estate could be held and rented to generate income with the intent of growing the initial investment through rental income and market appreciation. 
  • Buy and flip real estate – Investors could purchase lower-priced real estate and put in the work to repair and improve the property. Fixing up the property requires more hands-on work, but it can increase the property’s value in a relatively short time. The improved property could then be sold for a profit or held for rent.

2. Invest in a Real Estate Investment Trust (REIT)

A REIT is a company that owns, operates or finances real estate. Many REITs are publicly traded, like stocks and bonds, so they are highly liquid, pay dividends and require no hands-on management. 

3. Convert a Personal Residence to a Rental Property

An investor could convert their own home into a rental property rather than selling the home when ready to move to a new home. The rental income would help cover the mortgage on the property and allow the investor to build equity while not requiring much, if any, additional investment. As an added benefit, the investor could start taking depreciation on the rental property.   

4. Invest Through Real Estate Funds

Real estate crowdfunding platforms connect real estate developers with investors to finance real estate projects. Investing through a real estate fund requires capital from the investor to make the investment, and the investments tend to be illiquid. However, pooling funds allow investors the opportunity to purchase larger properties, like commercial properties or multi-tenant residential properties, that might be too expensive for one single investor.

5. Buy a Vacation Rental Property

An investor could purchase a vacation home or condo and rent the property when they are not using it. The investor could enjoy the benefits of owning a vacation home while receiving rental income and taking advantage of the tax deductions. Like with other rental properties, the investor would be responsible for finding renters and maintaining the property unless they use a property management company.

The real estate investment strategy an investor chooses will depend on several factors, including the investor’s financial situation, the desired level of involvement required by the investment and the time-horizon of the investment. Once an investor determines these factors, they can identify the real estate investment option that works best for them.

If you’re considering investing in real estate, the Anders Real Estate Group can help decide the best option for you. Contact an Anders advisor below to learn more.

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October 20, 2020

How Real Estate and Construction Contractors Can Avoid Overpaying Sales and Use Tax

Whether you’re a real estate broker and independent contractor or a general or sub-contractor working in construction, sales tax for contractors can be complex and difficult to understand. There are many factors that affect taxability, and real estate and construction contractors may also be subject to exemptions based on the customer and the property’s function. In this time of uncertainty with the COVID-19 pandemic affecting many businesses, sales tax refunds can help recoup over-paid sales tax and put more money in your pocket.

Are contractors exempt from sales tax?

There are many circumstances where exemptions are allowed but understanding sales tax liability for a construction contractor can be a challenge. States generally do not consider contractors to be making taxable sales, but providing tax exempt services. Contractors are typically treated as the final users and consumers of materials and supplies they use on construction contracts and are liable for sales tax on purchases of those materials and supplies used in a contract. However, many states provide special treatment for construction contracts with exempt organizations if the purchases are related to the entities’ exempt functions and activities.

When can an exemption certificate be used?

In both Missouri and Illinois, a contractor’s purchases of tangible personal property can be exempt with a flow-through exemption, provided a contractor is contracting with an exempt organization. The contractor can obtain an exemption certificatefor purchases of tangible personal property and materials used for a specific contract for the exempt entity. In Missouri, a project exemption certificate is typically needed from the exempt entity and provided to the vendor when making such purchases. Not all states allow a flow-through exemption from exempt organizations, and each state’s rules need to be reviewed individually.

In Missouri, contractors are exempt on purchases of tangible personal property for use out-of-state on a construction contract with an entity authorized to issue an exemption certificate under that state’s law. In Illinois, tangible personal property sold to contractors who resell it as tangible personal property can be treated as a purchase for resale.

Are all contracts treated the same?

Determining the structure of the contract can also impact the taxability. A lump-sum contract will generally leave the contractor responsible for the tax on materials. Whereas, with a separated contract or a cost plus contract the sale may be deemed as part property and part sale of service which may be treated differently on the contractor’s sale to their customer.

These are just a few sales tax nuances and opportunities available to contractors. A clear answer to specific questions on a state-by-state basis will need to be determined by reviewing each state’s rules and regulations. Anders has the resources and expertise to quickly help determine opportunities for you.

A sales and use tax refund review can help find overpayments to keep more money in your business’ pocket during this tough time. Anders State and Local Tax advisors have the expertise to pursue these refunds and can do so on a contingent basis. Contact an Anders advisor below for more information on reverse audits.

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September 8, 2020

Downtown St. Louis Construction Update: Projects Continuing During COVID-19

As a downtown-based firm, we are especially interested in the projects that are going on in and around the city. Due to the uncertainty surrounding COVID-19, some projects have come to a halt while others continue to move forward.

St. Louis has a higher rate of growth for 2020 than many of its peer cities. For the first quarter of 2020, St. Louis saw construction project starts grow 84% compared to 2019. However, in April, the city saw a 76% decrease in the number of permits issued. This shows even though the number of permits is down, construction is still holding strong in St. Louis. Below are some projects that we have been keeping our eye on.

City Foundry STL

Slated to open mid-summer, this multi-use facility near downtown will house a food hall, bar, offices, shops and entertainment. Fresh Thyme has also signed a lease at this location. An exact opening date for the City Foundry will be announced later based on recommendations by health officials.

Cortex Hotel

The Aloft Hotel by Marriott, the first hotel in the Cortex tech district in Midtown, welcomed their first guests on June 8th when the hotel opened despite the ongoing pandemic. The amenities that were once closed to the public due to the COVID-19 pandemic opened on June 15th. They will be implementing procedures including additional cleaning and social distancing in common areas to protect guests and employees.

Ballpark Village Phase 2

Even as the coronavirus pandemic continues, One Cardinal Way is open and welcoming tenants as of August 1, 2020. The crane has been dismantled and hard hat tours are now available for individuals interested in leasing. This luxury apartment complex includes a rooftop pool and sundeck in addition to great views of Busch Stadium, downtown and the Mississippi.

Bar K

Bar K, a Kansas City – based bar and restaurant, has plans to open a new location in the Grove later this year with Nestle Purina being a minority investor. Bar K is a dog and people-friendly space. Included will be a dog park, bar, restaurant and entertainment space. Entry fees for dogs can be paid on a daily basis or through an annual fee. Individuals visiting with no animals are admitted with no fee.

Hotworx

Hotworx, a gym out of New Orleans, will be opened in the Element Hotel which is under development in the Midtown region. Hotworx uses saunas as workout rooms and has more than 140 locations throughout the United States. The St. Louis location will include 7 saunas that will have 10-12 workout options. High intensity workouts are limited to 15 minutes but yoga and pilates workouts can last up to 30 minutes. Members pay monthly fees that give them 24-hour access to the gym. Developers expect this location to open in the third or fourth quarter of 2020.

Overall, the construction in the downtown region is moving forward amid the coronavirus pandemic. The Anders Construction Group stays up to date on the latest projects in our own backyard. Stay tuned for more details on upcoming St. Louis construction projects.

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August 27, 2020

How COVID-19 Has Impacted Rental Income for Landlords and Strategies to Recover

The U.S. unemployment rate spiked to 14.7% in April; the highest it has been since the Great Depression. High unemployment has caused landlords to be creative on how to solve issues arising from tenants that are unable to meet their rental agreement obligations. Landlords are using different techniques to keep vacancy rates down and rental income coming in. Some solutions landlords are considering include rental forgiveness, postponement or seeking outside short-term financing. 

Protection from Evictions Under the CARES Act

Previous to COVID-19, if tenants failed to meet rental obligations landlords had the option to terminate the tenancy by filing an eviction lawsuit to have the tenant physically removed. Health and safety concerns related to COVID-19 have halted evictions in some areas which has led landlords to think of other ways to cope with the lack of rental income. One of the ways landlords are managing their tenants’ inability to pay rent is by allowing postponement of their payments with an agreement that it will be repaid at a later date, either in a lump sum or spread out. Some have done this by agreeing to allow tenants to repay their missed payments when they receive government stimulus funds or by extending lease agreements and allowing payments to be made at the end of the lease. 

Every landlord strives to generate profits after covering any debt servicing with their rental property. However, with the affects of COVID-19, cutting losses has been the best option for some landlords. Temporarily lowering rent rates for tenants has allowed landlords with mortgages to retain tenants along with having the ability to meet their short-term financial obligations and not default on their loan.

How Landlords Can Recover

Having a financial safety cushion is important for landlords in times like these. Seeking a line of credit or having the assurance of being able to obtain a loan from a private lender is important as part of a disaster recovery plan. Many landlords have taken these measures to protect themselves and be better prepared in case of emergency.

Our advisors are closely following COVID-19 relief efforts and will continue to publish insights to keep you informed about potential impacts and benefits. Visit our COVID-19 Resource Center for more resources. To discuss your situation and recovery options, contact an Anders advisor below. Learn how Anders works with the real estate and construction industries.

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August 18, 2020

Why Real Estate and Construction Companies Need to Update Technology to Continue Adjusting to the New Normal

As businesses are still facing unusual times with unknown futures, some companies are still completely intact, some are struggling, and others are still awaiting the whiplash of a fluctuating economy. All of this unknown will undoubtedly shrink a pipeline of projects to bid, impact leases, reduce or modify office space buildouts, and ultimately change the way businesses view their real estate and construction needs for their companies.

The Growing Need for Agility

Agility had a whole new meaning in spring of 2020, and technology played a huge part in that. Many companies were scrambling to evaluate whether their networks would be able to sustain an entire company working from home and taxing network firewalls and internet bandwidth. The real estate and construction industries specifically had to navigate having employees at a construction site or a dispersed field of agents in both a technical sense and workaday sense.

The construction industry typically spends significantly less on technology than most other industries. Those who made the investment in technology and were able to pivot easily were able to avoid some of the issues making the transition to a remote workforce. Those who had put off increasing that internet bandwidth, buying that bigger firewall or moving that workload to the cloud were behind on multiple fronts within a few days. Not to mention the remote support capabilities necessary to provide help for employees in all things technical. While the late adopters may have struggled, it’s not too late to get your technology up to speed as we continue to adjust to the new normal.

New Security Threats

As if maintaining productivity didn’t require enough attention, hackers immediately went to work to find ways to find vulnerabilities in the newly relocated workforce. Cybersecurity training, VPN connectivity, password policy and home network security were important topics pre COVID-19 but have now been taken to a new level. Those who had made their best efforts in these areas were thankful they did prior to COVID-19, but those who didn’t are forced to orchestrate a plan to deploy remotely without causing a significant disruption. A quick network assessment to evaluate your current technology framework will help identify areas to ramp up your security

If certain technology concerns that needed attention pre-pandemic have become mission-critical items during the pandemic, re-evaluating budgets are a very important decision. Bigger objectives that have more agility, like moving workloads to the cloud, or properly configuring a firewall with cybersecurity best practices require an experienced technology partner. Contact an Anders advisor below to make sure you are getting the value and service you need to move your business forward or learn more about Anders Technology.

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August 13, 2020

Proposed Regulations Define “Real Property” for Like-Kind Exchanges

The IRS released proposed regulations defining property that can qualify for like-kind exchanges under changes imposed by the Tax Cuts and Jobs Act (TCJA). Prior to the TCJA, some exchanges of personal property, such as licenses, aircraft and equipment would qualify for a 1031 like-kind exchange. After the passing of the TCJA, only real property qualifies for exchanges. These proposed regulations offer some clarity on the definitions of property in 1031 exchanges.

Real Property for Like-Kind Exchanges

Under the proposed regulations, real property includes:

  • Land and improvements to land
  • Unsevered crops and other natural products of land
  • Water and air space superjacent to land

Land and Improvements

“Improvements to land” is a broad statement and is broken down as an inherently permanent structure and its structural components. Inherently permanent structures include buildings or other structures that are permanently affixed to real property for an indefinite period of time.

A structural component is any asset that is a constituent part of an inherently permanent structure. Structural components only qualify as real property if the taxpayer holds interest in both the component and physical space of the inherently permanent structure.

The proposed regulations list additional structural components and provide factors for determining whether components are structural components. These tests include:

  1. The manner in which the asset is affixed to the real property
  2. Whether the asset is designed to be removed or remain in place
  3. The damage that removal of the asset would cause to the item or real property
  4. Any circumstances that suggest the asset was not affixed for an indefinite period
  5. The time and expense required to move the asset
  6. Whether the component is listed during the construction of the building structure

Unsevered Crops and Natural Products

The proposed regulations state that unsevered natural products are generally real property. These products include crops, plants, timber, mines, wells and other natural products. These items are no longer considered real property when they are removed from the land.

Intangible Assets

An intangible asset is considered real property as long as the asset:

  • Gets its value from the real property
  • Is inseparable from the property
  • Does not create income other than consideration for the use or occupancy of space

An intangible asset as real property would be a license or permit that is used solely for the use or occupation of land or permanent structure and is in the nature of the lease or ownership.

If you are considering selling your property and would like to further discuss what property is qualifying under the proposed regulations, contact an Anders advisor below. Learn how Anders works with the real estate and construction industries.

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