Warning: Tax Changes Ahead

It's pretty clear that there will be tax increases in the future for investors and wealthy individuals.  While we know that what the candidates are proposing could change, we know that tax rates are likely to rise.

 What does that mean for commercial real estate?  Time to get moving!  A transaction that closes this year will result in lower capital gains taxes for sellers than they would be likely to get in 2013.  Buyers should be motivated to buy now, since they are likely to be able to get a better price if they are able to close by the end of this calendar year.

As we all know by now, it takes a lot longer and is a lot more difficult to close than it was in the good old days.  Therefore, even though we've just passed Labor Day, time is of the essence now. If you want to make sure that you close on a transaction this year, you'd better be watching the calendar closely, and not letting time pass while you ponder an offer.  It could cost you money in the near future.

A Challenge

We're having a little contest here at Pearce Commercial.  We just had an investment property close in 58 days from listing to transfer of title.  Since so  many commercial transactions are affected by tax considerations, and since many companies and individuals have calendar year tax periods, we know that there will be some among you who are going to want to complete a transaction before the end of 2011.  So, here's the challenge:  Can someone out there beat the 58-day record?  It may be that the clock has already started, because the property to be transferred may already have been listed.

There are 39 days, counting today (because there's plenty of time to act today!), left in 2011.  So use them wisely, and help us beat the current record holder.  Buy today-close in December!