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EisnerAmper Blog

Building Success: An EisnerAmper Real Estate Blog

Upcoming EisnerAmper Real Estate Private Equity Summit Featured in Real Estate Weekly

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The second annual EisnerAmper Real Estate Private Equity Summit will take place on October 1st in New York. Organizers expect more than 500 real estate investors, owners, and industry leaders to come together once again at the McGraw-Hill Conference Center to hear from real estate and private equity speakers, including Keynote Sam Zell, chairman of Equity Group Investments. Real Estate Weekly just covered the all-day event on their website. Find out more about our event here.

The (Potential) Rebirth of Bonus Depreciation

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Dmitriy Gelfand By Dmitriy Gelfand, CPA and Jonathan Sparacio, CPA

First enacted in the aftermath of 9/11, the federal bonus first-year depreciation allowance (“bonus depreciation”) has provided an incentive for businesses to accelerate their purchases. However, the provision expired, once again, as of December 31, 2013. As a result, significant tax benefits from prior years may not be available to companies for expensing the cost of this year’s business equipment purchases and leasehold improvements.

Of course, over the past dozen years, bonus depreciation has died – and been resurrected by Congress – several times, but has never been made permanent. The good news: The outlook seems outstanding that some form of bonus depreciation is likely to be extended retroactively for 2014 (and, probably, for 2015). The bad news: Despite bipartisan support from the tax-writing committees in both houses of Congress, it appears that bonus depreciation may not officially be brought back into the tax code until after the November 2014 mid-term elections.

On one hand, the House Ways and Means Committee recently approved legislation (H.R. 4718) that would make bonus depreciation a permanent part of the tax code. Specifically, the House bill would allow businesses to immediately deduct one-half of their new qualified business equipment purchases. In addition, it would enable companies to elect accelerated alternative minimum tax (AMT) credits in lieu of bonus depreciation, and it would expand the types of retail improvements that are eligible for bonus depreciation.

On the other hand, the Senate Finance Committee favors legislation (S. 2260) that would extend the existing 50% bonus depreciation only until December 31, 2015. This action, under the proposed Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act, would extend 51 of the temporary tax provisions for a two-year period.

Before any legislation is enacted, the House of Representatives and the Senate will need to agree on a final bill that reconciles both proposals and that provides revenue “offsets” for its costs. However, leaders of both political parties, in both houses of Congress, seem to agree that it is essential to provide an incentive – such as bonus depreciation – to encourage immediate capital investments by U.S. companies.

Where Do We Grow from Here?

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June 24, 2014


Real Estate EventOn June 10, EisnerAmper’s Real Estate practice, along with Newmark Grubb Knight Frank and Sills Cummis & Gross P.C., co-sponsored a real estate event entitled “Where Do We GROW from Here?” at Mountain Ridge Country Club.

Governor Chris Christie was our guest speaker. More than 120 attendees, including many leaders in the New Jersey real estate industry, came to network and listen to the Governor’s perspective on the business issues affecting development in New Jersey.

The event kicked off with David Simson from Newmark Grubb Knight Frank, who thanked everyone for attending and set the stage for the evening. EisnerAmper Chairman Howard Cohen then introduced Governor Christie.  Jerry Zaro of Sills Cummis & Gross interviewed the Governor about the important issues affecting our local economy.

During the approximate 45 minute interview, the Governor responded to questions sent in by the attendees and covered a broad range of topics. Some of the issues discussed included the effect of the state’s incentive legislation including the “Grow New Jersey” program, consolidation of the state’s many municipalities, the state’s pension plan obligations for public employees, and the impact of COAH on development in in New Jersey.  The Governor also answered some lighter questions such as his favorite part of being Governor and his predictions on the then-undecided NBA and NHL playoffs. 

The event was well-received, with New Jersey real estate leaders having the opportunity to network with each other both before and after the program at one of the state’s unique venues.

Please feel free to visit our Facebook page to view pictures from the event.

 

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