Commercial Real Estate
Major Provisions of the Tax Reform Bill Affecting Commercial Real EstateLike-Kind Exchanges
- The final bill retains the current Section 1031 Like Kind Exchange rules for real property. It repeals the use of Section 1031 for personal property, such as art work, auto fleets, heavy equipment, etc.
- The exclusion of real estate from the repeal of 1031 like-kind exchanges is a major victory for real estate stakeholders, who had fought hard to preserve the provision for several years, and against long odds.
- The final bill includes the House and Senate language requiring a 3-year holding period to qualify for current-law (capital gains) treatment.
- Again, real estate stakeholders prevailed against long odds to preserve the incentive of capital gains treatment for carried interests in the final legislation.
- The final bill retains the current recovery periods for nonresidential real property (39 years), residential rental property (27.5 years) and qualified improvements (15 years). The bill also replaces separate definitions for qualified Restaurant, Leasehold, and Retail improvements with one definition of “Qualified Improvement Property.”
- The final bill retains the deductibility of qualified private activity bonds used in constructing affordable housing, local transportation, and infrastructure projects and for state and local mortgage bond programs.
- The House bill would have eliminated the use of private activity bonds.
- The final bill retains current law. However, a lower corporate rate will negatively impact the value of the credits in the future, and will result in less low-income housing being developed.
- The final bill repeals the current-law 10% credit for pre-1936 buildings but retains the current 20% credit for certified historic structures (but modified so the credit is allowable over a 5-year period based on a ratable share (20%) each year).
- The House bill would have entirely eliminated the Historic Rehabilitation Credit.
Commercial Brokers Association (CBA)
Bay East REALTOR® Members qualify for the Basic CBA membership. Join today for access to many commercial real estate services such as referrals, mentoring, discounts on commercial education classes and other tools to make your commercial transactions hassle-free. Click HERE to apply. Choose the “Bill Me” payment option for free CBA Basic membership. For more information email Linda.
Commercial Brokers Association (CBA) is California’s premier commercial real estate association promoting and serving the commercial market since 1994.
Created by and for individuals in the commercial real estate industry, CBA is specifically designed to provide brokers and sales associates with a host of valuable services to make commercial transactions hassle-free.
CBA’s membership is made up of commercial real estate professionals, specializing in commercial real estate services, and residential real estate professionals interested to learn more about commercial real estate.
Events & Education
NAR REALTOR® Commercial Benefits
NAR REALTOR® Commercial Resources
NAR Biennial Code of Ethics Training
The NAR has mandated that all REALTOR® members must complete an approved course of training on the Code of Ethics EVERY 2 YEARS starting in 2017.
Here are some resources that will help you:
Commercial Legal Hotline
The C.A.R. Legal Hotline offers members the incredible benefit of receiving free legal advice over the telephone on a vast array of real-estate related topics: contract interpretation, arbitration, litigation, tax issues, commission disputes, disclosure requirements, fair housing issues, laws governing homeowners' associations, and so on.
By contacting the C.A.R. Legal Hotline you can speak directly to one of C.A.R.'s attorneys. Since its debut in 1979, C.A.R. attorneys have answered more than 600,000 questions about real estate law and brokerage practice.
Please request to speak to Linda Kirios, Commercial Real Estate Attorney at C.A.R.
LEGAL HOTLINE HOURS:
Monday through Friday, from 9 a.m. - 6 p.m. (213) 739-8350 and (213) 739-8286
Saturday, from 10 a.m. - 2 p.m. on a first come first serve basis by calling (213) 739-8282 only.
The (213) 739-8350 and (213) 739-8286 numbers are not available on Saturdays. (due to limited staffing the Saturday Hotline service is only for questions regarding active transactions).
ARE YOU NEW TO C.A.R.?
If so, please read the Legal Q&A, Member Legal Hotline, for information about this service before contacting the Legal Hotline. (Requires C.A.R. Member Login, If You Don't Have One, You Can Create One On The Linked Page)
SUBMIT YOUR QUESTION TO THE HOTLINE:
Online: Submit Your Legal Question
Fax: (213) 480-0864
Phone: (213) 739-8282 (for agents)
Phone: (213) 739-8350 (for broker-owners, office managers, designated Commercial REALTORS®)
WHETHER YOU SUBMIT YOUR QUESTION ONLINE, BY E-MAIL OR FAX:
PLEASE KEEP YOUR DESCRIPTION OF THE ISSUE SHORT (2-3 short paragraphs--there is a 2000 character maximum computer software limit on messages relayed to attorneys).
YOU'LL BE ABLE TO PROVIDE MORE DETAILS WHEN YOU TALK TO AN ATTORNEY. One of our C.A.R. attorneys will telephone you to discuss your legal question, so please be sure to indicate the name of any other licensee involved in your question/transaction as well as your telephone number.
**Some of these Links will require you to log into CAR with your username and password
RPR Commercial is your one-stop-shop for comprehensive market data, allowing REALTORS® specializing in commercial properties to save time and money. It is your REALTOR® benefit, already incorporated into your REALTOR® dues.
Realtors Property ResourceTM (RPR) Commercial is NAR's exclusive online real estate resource that provides REALTORS® with data on every property/parcel in the United States. RPR Commercial aggregates tax assessment and public records information, stand-alone mortgages and Liens, foreclosure data, demographics and census information, ESRI Tapestry data, along with licensed data from Commercial Information Exchanges (CIE) and MLS’s to create search and report resources for Commercial REALTORS®.
Where can I get more information on RPR?
Members can learn more about RPR Commercial and view step-by-step video.
- Get Started Using Your RPR Commercial
- Watch a short video on each RPR Commercial function (On-demand resources that allow you to learn more about the features that are relevant to your business)
- RPR Mobile Video
- RPR Commercial Homepage (LIVE Webinar Registration, Best Practice Articles & Video Learning) use this direct link
- RPR Commercial Webinars use this direct link
- Learn how REALTORS® in other parts of the country are using RPR Commercial.