When COVID-19 hit the States and stay-at-home orders swept across the nation, it is no wonder that the hotel industry took a steep dive. While 2020 started out as just another year, April soon became Continue reading “The Real MVPs – Markets That Outperformed in 2020”
Our team at Gulati Law is sending you this friendly reminder of the deadline to update your business’s Annual Corporate Report with the Florida Department of State Division of Corporations. If you have not filed yet, please prepare to do so soon. Continue reading “DEADLINE APPROACHING: Annual Corporate Reports 2021 due soon!”
Imagine this scenario, you are a hotel owner with a guest, that for one reason or another, isn’t exactly the ideal customer. Maybe you are finding that this guest habitually has one too many drinks at the lobby bar and proceeds to make other guests uncomfortable Continue reading “Hotel Guests, Tenants & Transient Occupants, Oh My!”
Property Cost Allocation (aka “Cost Segregation”) is back with a vengeance, according to GMG Savings in a recent article.
A cost segregation study is an essential fiduciary component when building, purchasing, or renovating a hotel or motel. Hotel Continue reading “What a Cost Segregation Study Means for Your Hotel or Motel”
State Inspectors have been visiting properties and issuing warnings to hotels that are not in compliance with Florida’s Human Trafficking Training Law
We want to inform you of Florida’s new human trafficking law that was implemented Jan. 1st, 2021. Hotel Continue reading “Florida Hotels Must Comply with New Human Trafficking Training Law “
2021 has already seen a flurry of serial filers continuing to file lawsuits and send demand letters alleging violations of the Americans with Disabilities Act (hereinafter “ADA”). The ADA prohibits discrimination against people with disabilities in Continue reading “Conforming to an ADA-Compliant Property”
1031 Exchange transactions can help business owners leverage valuable cash to finance critical growth strategies.
At least once a week I get asked: What are the benefits of doing a Section 1031 Exchange? I normally give the usual answer: Deferral of Taxes resulting in more funds to spend on possible Continue reading “Seven Ways 1031 Exchanges Can Help Strengthen Businesses”
A disbarred attorney, who continued to file hundreds of disability lawsuits on his own behalf, has been permanently blocked from filing new cases in Arizona’s federal court district without permission. Judge Diane Humetewa officially labeled Peter Strojnik a “vexatious litigant” in a ruling that compared his Continue reading “What Peter Strojnik’s “Vexatious Litigant” ruling in AZ could mean for your business?”
2020 certainly threw some curveballs to our friends, family, & clients. As we rebuild our community back to the vibrant economy it once was, it is a great time to review your estate plan or corporate documents and evaluate any needs going forward.
New Year Checklist: Make sure that…
- All major decisions requiring owner/partner approvals have been documented and are included in the company’s record books.
- Secretary of State filings due during the year have been filed (please note Florida’s deadline is May 1st, 2021).
- Agreements among members, employees, and consultants have been documented and signed.
- The company’s agreed value (if applicable), financial statements, and ownership records are current.
- State taxes (if applicable) have been paid and business licenses renewed.
- The company is in good standing in its state of formation and in each state where it is qualified to do business.
- And most importantly your family estate plan is up to date.
If any of the above items have not been updated or handled, we suggest taking the time to speak with your Florida attorney to get them updated. This is also a good time to communicate with members about the company’s progress during the year. Finally, 2021 Annual Corporate Renewals are now due, please reach out to Gulati Law, P.L. for assistance with any of these matters at (407) 900-5054.
If you are a foreign national or you are assisting a foreign national client in selling real estate, you are most likely familiar with Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”). When you are handling a real estate transaction involving a foreign seller, depending on the value of the property and how it will be used, the transaction is generally subject to a 15% withholding on the purchase price due to FIRPTA. The Act places the responsibility of the Buyer for this withholding.
For the purposes of FIRPTA, a foreign seller is defined as either a non-resident alien individual, a foreign corporation not treated as a domestic corporation, or a foreign partnership, trust or estate. A person is considered to be a resident alien under FIRPTA if they have legal permanent resident status in the U.S. (they have a Green Card), and they meet the substantial presence test which sets a minimum number of days they must be physically present in the United States.
The formula for the substantial presence test is as follows:
- 31 days during the current year;
- 183 days during 3-year period
- All the days present in the current year, &
- 1/3 of the days present in the first year prior, &
- 1/6 days present in the second year prior.
If you are buying or selling a property, and the Seller is a foreign national, it is highly recommended that you obtain legal counsel to guide you through the complex particulars and ensure that the financial obligation you are about to embark on is drafted specific to your needs and in your interest. For any questions or assistance, please contact us as we would be happy to guide you.