Real Estate/Development,
Tax
Oct. 18, 2019
Treatment of lease termination costs for opportunity zones
How can opportunity zone investors grapple with the growing likelihood of lease termination costs?
Phil Jelsma
Partner and Chair of the Tax Practice Team
Crosbie Gliner Schiffman Southard & Swanson LLC (CGS3)
Email: pjelsma@cgs3.com
Phil is chair of the tax practice team at CGS3. He is recognized as a leading joint venture and tax attorney, with a 30-year background in real estate exchange transactions, syndications, nonprofit corporations and international tax planning.
In a recent potentially thorny opportunity zone transaction, an investor was looking to acquire a rent-controlled multi-family apartment building in Los Angeles. Because the building was rent controlled -- which is becoming increasingly common in California -- the new owner needed to terminate the existing leases, rehab the building and lease all of the units after the completion of improvements. Which raises the question: Can the new owner include the lease termination costs in the basis ...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In