Madison Title Agency | Madison 1031 | LeaseProbe/Real Diligence | Madison SPECS

News & Notes WINTER 2013
Tax Relief In The Wake Of Hurricane Sandy With tax season on the horizon, property owners with losses related to Hurricane Sandy should be aware they may be entitled to significant tax relief. To help CPAs and attorneys betters understand the special tax issues related to the October disaster, Madison Learning Center hosted a seminar taught by Lee David Medinets, Esq. on November 30th at their corporate offices in Lakewood, NJ.
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A Note From Our PresidentAccording to an old story, many years ago two salesmen were sent by a British shoe manufacturer to Africa to investigate and report back on market potential. The first salesman reported back and said, "There is no potential there - nobody wears shoes." The second salesman reported back and said, "There is massive potennow,tial there - nobody wears shoes." This simple story illustrates that any situation may be viewed in two quite different ways.

In reflecting on the state of the real estate market, some may see only the challenges of the past and potential obstacles ahead. At Madison, we take a different view. 2012 was a year of growth for the Madison family of companies. With the rebound of the real estate market, we were able to service past clients and opened doors to new relationships. We also saw the opportunity to expand our suite of services and add exceptional talent to our team of experts.

Now, as we begin 2013, we see even more possibilities ahead. We remain grateful for the opportunity to continue to service our clients, loyal friends and associates who make our progress possible. In addition to providing our customers with stellar service and sage advice, we will continue to keep our clients 'in the know' by publishing our weekly blog, The Trusted Advisor, and offering our monthly CLE & CPE-approved educational seminars. We hope that as our friends and colleagues look ahead, you see only massive potential and experience great opportunities.

Joseph I. Rosenbaum
 
 
 
Large Title Insurance Underwriters Introduce Policy Changes
Coverage Areas See Changes Based On Risk
Several major title insurance underwriters have made recent, important changes to their policies in response to risk assessments. A more recent change then reversed a previous change. As underwriters are increasingly more vigilant to balance risk against return, title insurance coverage is becoming more erratic. Going forward, commercial real estate lenders and purchasers – working closely with their attorneys and title agents – will need to remain current on changes in the title insurance landscape to understand the latest in what underwriters are and are not willing to cover.
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New Higher Tax Rates Make Good Planning Essential You probably have read alot about the new marginal tax rates for high income individuals. The purpose of this article is to take a quick look at a couple of the ways that these new rates and some old ones can add up and affect tax planning for real estate investors.
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Leveraging Tax Benefits by Immediately Writing-Off all Impaired Assets
Underutilized and Lesser-Known Area Related to Cost Segregation
In the last few years, the use of cost segregation studies as a means of lowering income taxes has gone from being a niche practice utilized by the savviest of real estate investors to an almost standard part of purchasing commercial real estate properties, whenever applicable. Yet despite its increase in understanding and popularity, there is one aspect of cost segregation studies that is still widely unknown and underutilized, leaving additional (sometimes considerable) tax benefits on the table for property owners and investors.
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Tax Court Rules on Converting §1031 Replacement Property to Personal Residence
Recent Case Clarifies Requirements for Claiming Tax-Deferral Benefits
The subject of tax breaks – who gets them and how they are applied – can be one of those hot-button topics best avoided at dinner parties, especially in an election year. But a powerful and under-utilized section of the Federal Tax Code postpones capital gains taxes to benefit both investors and the larger community. Recently, the U.S. Tax Court took steps to better clarify the guidelines for these §1031 Exchanges.
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MCRES Executive Honored by New York State
Senate Louis Weinberg Named "Man of the Year" for Community Leadership
The New York Senate recently paused in its deliberations to pass a special resolution honoring Louis H. Weinberg, VP and Counsel for Madison Commercial Real Estate Services.
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Real Estate Buyers Increasingly Seek Offering Memorandum Services
Investors Use OMs to Help Secure Financing Partners in Challenging Economic Environment
One benefit of a competitive and challenging financing environment is that innovative services are emerging in response to lient needs within the commercial real estate industry. One such product are Offering Memorandums (OM), used by real estate buyers seeking financing partners.
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Real Estate FAQ's
Here are two of the most commonly asked questions we are hearing now:
Q. If a taxpayer starts an exchange in 2012 and the exchange fails in 2013, which years tax rate will be applied to the income?
Q. If I do a 1031 like-kind exchange in 2013 or after, will I have to pay the 3.8% Medicare tax on the profits? Click here to learn the answers