Tag: taxes

Real Estate and Rental Agencies Under the Fair Labor Standards Act (FLSA)

Revised July 2008

This fact sheet provides general information concerning the application of the FLSA to real estate and rental agencies.

Characteristics

A real estate/rental agency is one which represents both in-state and out-of-state clients in negotiating the purchase or sale of property within the State in which the broker is located, or negotiates for the purchase or sale of property in other states, or collects or remits rents or other monies for property owners.

Coverage

Employees of real estate/rental agencies are individually covered by the Act if they regularly engage in work which is considered to be interstate commerce. This includes, for example, handling goods coming in from outside the state or which will be sent outside the state either by direct shipment or by a customer. Clerical and janitorial employees whose work is closely related and directly essential to such interstate operations are also covered, as are employees regularly engaged in interstate communication by telephone, telegraph, or the mails.

An enterprise is defined in the FLSA to mean the related activities performed, either through unified operation or common control, by any person or persons for a common business purpose. The FLSA applies to enterprises that have employees who are engaged in interstate commerce, produce, handle, sell, or work on goods that have been moved in or produced for interstate commerce, have $500,000 in annual business volume, are named in the FLSA. Covered non exempt employees must be paid in accordance with requirements of the FLSA.

In determining the annual business volume, gross receipts from rental property owned and gross fees from rental property managed should be included. Gross receipts from the sale of property and property insurance should also be included.

Requirements

The FLSA requires the payment of the Federal minimum wage to covered non-exempt employees and overtime pay at a rate of not less than one and one-half times the regular rate of pay after 40 hours of work in a workweek. Wages required by FLSA are due on the regular payday for each pay period. Employers are required to keep records containing information specified in the regulations (29 CFR Part 516

).

The FLSA youth employment regulations forbid the employment of minors under 14, restrict the hours of work and certain occupations for 14 & 15 year olds, and forbid the employment of 16 & 17 year olds in hazardous occupations.

Exemptions from various provisions of the FLSA are provided for employees who meet certain requirements. Among the employees who may be exempt from minimum wage and overtime pay are executive, administrative, professional, and outside sales employees. Each of these categories of employee must meet specified requirements before the exemption may be applied.

Typical Problems

Some problems and misconceptions which Wage and Hour investigations commonly find in this type of business are:

  • Employees being charged for meals, lodging, and other facilities which are actually furnished for the benefit of the employer.
  • Employees being charged full retail cost for facilities furnished for their benefit. They may only be charged actual cost.
  • Improper computation of gross business volume. With respect to the sale of any property or commodity (such as insurance) or the rental of property owned by the employer, gross receipts are counted in determining business volume. In the rental of property owned by someone else, only the commission paid is counted in the gross business volume.

Professional Offices Under the Fair Labor Standards Act (FLSA)

Revised July 2008

This fact sheet contains information to assist in determining how the Fair Labor Standards Act (FLSA) applies to Professional Offices, e.g., doctors, lawyers, accountants, etc.

Characteristics

Professional offices provide services to their customers, clients, patients which may or may not involve the sale of “goods” or “products”. Many such offices are small, with few employees, and are local in nature. Others may be part of a larger enterprise with more than one office or establishment.

Coverage

The FLSA provides two methods for determining whether provisions of the Act apply to employees of a given employer.

If the annual dollar volume of sales or business done is $500,000 or more, whether from an enterprise made up of only one establishment or one with multiple establishments, all employees of the enterprise are covered by the Act on an “enterprise” basis.

Additionally, the Act also provides an “individual employee” basis of coverage. If the gross sales or volume of business done does not meet the requisite dollar volume of $500,000 annually, employees may still be covered if they individually engage in interstate commerce, the production of goods for interstate commerce, or in an occupation closely related and directly essential to such production. Interstate commerce includes such activities as transacting business via interstate telephone calls or the U. S. Mail (such as handling insurance claims), ordering or receiving goods from an out-of-state supplier, or handling the accounting or bookkeeping for such activities. It would also include the handling of credit card transactions since that involves the interstate banking and finance systems.

Requirements

Employees who are covered by the FLSA are entitled to be paid at least the Federal minimum wage as well as overtime pay at time and one-half the regular rate of pay for all hours worked over 40 in a workweek. (This may not apply to certain executive, administrative, and professional employees including computer professionals and outside sales). The Act also contains youth employment provisions regulating the employment of minors under the age of 18 in covered work, as well as recordkeeping requirements.

Typical Problems

(1) Paying non-exempt employees a salary and not paying time and one-half for hours over 40 a week, (2) not paying employees for all hours they work, e.g., reporting early or working through lunch break or staying late without being paid for such extra time, (3) not paying for the time employees spend performing work at home or not including such hours for overtime purposes.

Some Other Pertinent Labor Laws:

(1) The Immigration Reform and Control Act requires employers to complete and maintain I-9 forms to verify the employment eligibility of all individuals hired after November 6, 1986. (2) The Wage Garnishment Law limits the amount of an individual’s income that may be garnished and prohibits firing of an employee whose pay is garnished for a single debt. (3) The Employee Polygraph Protection Act prohibits most private employers from using any type of lie detector tests either for pre-employment screening or during the course of employment. (4) The Family and Medical Leave Act requires covered employers to provide “eligible” employees up to 12 weeks of unpaid, job-protected leave each year for specific family and medical reasons.

Overpaying Property tax

https://lowerpropertytaxca.com/

The Impact—and Your OpportunityAs Our Client left the hearing room, he knew this victory was bigger than just The Crossings. Other property owners facing similar issues could now challenge their assessments with greater confidence. The case set a precedent, demonstrating that robust, market-informed evidence could lead to fair property valuations.

It had been a battle, but he had proved that the system could be challenged—and that fairness in taxation was worth fighting for.

Could You Be Overpaying on Property Taxes?

If you own Large apartment complexes or commercial property, you may be paying far more in property taxes than you should. Just like Our Client, you have the right to challenge an unfair assessment and secure the tax savings you deserve.

At Lower Property Tax CA, we specialize in helping property owners like you reduce their tax burden. Our expert consultants and appraisal team will analyze your property’s financials, market conditions, and county assessment methodologies to build a strong case for a reduction.We recognize that every client’s tax situation is unique. That’s why we take the time to understand your specific needs and tailor our services accordingly. You can count on us to provide personalized attention to your tax matters.

5 Million Property Tax savings https://lowerpropertytaxca.com

Overview :lowerpropertytaxca.com

The Appeals Board granted a significant property tax reduction for “The Crossings,” a commercial property, based on discrepancies between the assessed value by the County Assessor’s Office and the property’s actual market value. This decision is rooted in evidence provided by the petitioner that demonstrated the need for a fair valuation reflective of current market conditions and economic factors.

Key Issues :

1. Disputed Assessed Value:

   The County Assessor had valued the property at a substantially higher amount compared to the petitioner’s appraisal. This discrepancy appeared due to the methodology used by the Assessor, which was argued to overestimate potential income and market demand.

2. Valuation Approach:

   The petitioner presented a detailed income approach analysis, supported by financial documents and market data. This included:

   – Current lease agreements and vacancy rates.

   – Comparable market sales data reflecting a downturn in commercial property demand.

   – An independent appraiser’s valuation, which provided a significantly lower estimate than the County’s figure.

3. Economic Considerations:

   The Board acknowledged that external economic factors, such as fluctuating demand for retail spaces and changes in capitalization rates, significantly impacted the property’s true value. The petitioner’s evidence convincingly tied these factors to the Crossings’ underperformance.

Board Findings:

1. Valuation Adjustment:

   The Board ruled in favor of adjusting the assessed value downwards to align with the petitioner’s evidence. This adjustment not only reduced the property’s tax liability but also set a precedent for future valuations in similar cases.

2. Supportive Documentation:

   Key to the Board’s decision was the comprehensive financial and market data supplied by the petitioner. The documentation highlighted errors in the County Assessor’s methods and demonstrated a fair and defensible valuation.

3. Legal Framework :

   The decision was consistent with legal standards for fair market valuation and property tax assessment, emphasizing transparency and accuracy in the appraisal process.

Impact:

– Financial Relief: The reduction will result in substantial tax savings for the property owner, reflecting the economic realities faced by commercial real estate entities.

– Precedent: This decision could influence future appeals, encouraging property owners to challenge assessments that fail to consider market realities.

————

Assessment Appeals Board Decision Analysis on Reeder apartments in one page or less :

The Assessment Appeals Board granted a reduction in the assessed value of “The Crossings” property, addressing discrepancies between the County Assessor’s valuation and the actual market value. The petitioner successfully demonstrated that the County’s valuation overestimated the property’s income potential and market demand, using an evidence-based approach that included current lease agreements, vacancy rates, and comparable sales data. This evidence highlighted economic factors such as reduced demand for retail space and shifts in capitalization rates, which the Board found compelling.

The Board concluded that the County’s methods failed to account for the property’s economic realities, instead accepting the petitioner’s income-based valuation. This adjustment resulted in a significant reduction in tax liability for the property owner.

Although the decision operates within the framework of Proposition 13, which governs property tax assessments in California, the ruling focused on correcting valuation methodology rather than directly addressing Prop 13’s provisions. This decision sets a precedent for addressing valuation errors while emphasizing accurate market-based assessments. 

In essence, the Board’s decision highlights the importance of robust, market-informed evidence in achieving equitable property tax outcomes.https://lowerpropertytaxca.com/

bankruptcy taxes

Past Due Taxes

Are you worried back taxes owed to the IRS?  If you owe State, Federal, or local taxes and you are also behind in other payments to creditors, Federal Laws can give you assistance.

Filing Bankruptcy Can Stop Tax Garnishment

If you file for a Chapter 7 or Chapter 13 bankruptcy, all collection activities, including tax garnishments must cease.  While you may still owe the tax, the automatic stay will put you in a better position to deal with repaying the tax, if it is not one that can be discharged completely. Certain taxes, specifically income taxes (depending on their age) may not have to be repaid should you declare bankruptcy.  If you file for bankruptcy under Chapter 13, you may get up to 60 months to pay back taxes which are non-dischargeable under bankruptcy.

Understanding that each debtor’s circumstances are unique, results will vary depending on your individual situation.  The McCandless Law Firmhas helped many individuals in similar situations out of the financial holes they have found themselves in.  Contact us today to see how we can assist you in getting the fresh start you deserve.

Discharge taxes

Past Due Taxes

Are you worried back taxes owed to the IRS?  If you owe State, Federal, or local taxes and you are also behind in other payments to creditors, Federal Laws can give you assistance.

Filing Bankruptcy Can Stop Tax Garnishment

If you file for a Chapter 7 or Chapter 13 bankruptcy, all collection activities, including tax garnishments must cease.  While you may still owe the tax, the automatic stay will put you in a better position to deal with repaying the tax, if it is not one that can be discharged completely. Certain taxes, specifically income taxes (depending on their age) may not have to be repaid should you declare bankruptcy.  If you file for bankruptcy under Chapter 13, you may get up to 60 months to pay back taxes which are non-dischargeable under bankruptcy.

Understanding that each debtor’s circumstances are unique, results will vary depending on your individual situation.  The McCandless Law Firmhas helped many individuals in similar situations out of the financial holes they have found themselves in.  Contact us today to see how we can assist you in getting the fresh start you deserve.