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Tag Archive for Real Estate

An IRS Hot Button – What Is Really The Cost? Part II

Jim Marshall, real estate, cost basis

Previously, I discussed keeping documented support for the basis of real estate. The easy part was the purchase and direct capital expenditures. But consider some of the other factors that directly impact your basis. Sale of an easement or eminent domain transfer, is it a sale, what is the allocated basis, does it diminish the remaining property value and if so how much? Read more

An IRS Hot Button – What Is Really The Cost? Part I

Jim Marshall

One of the IRS hot buttons lately is the cost basis. That applies to not only the basis of your stock and bond investments but also the much more diverse real estate holdings and private investments in partnerships, corporations, joint ventures, LLC’s and even trusts. Read more

Real Estate Professionals For U.S. Federal Income Tax Purposes

John Dundon

Everyday people misinterpret the tax code. It does not matter if you are a bookkeeper, accountant, unlicensed tax practitioner, Enrolled Agent, CPA, tax attorney, or even a Tax Court Judge, the tax code is complicated and confusing and many of us struggle understanding it, much less applying it in practicality.

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Can My IRA Invest In Real Estate?

Jim Marshall, LLC

Every year I get this question from clients wanting to invest in real estate through their IRA or SEP IRA. While it is not as straight forward as buying stocks, mutual funds or bonds it is doable if the proper steps are followed and adhered to. First you would transfer the existing IRA to a self-directed IRA, your banks and brokerage firms will not handle these type accounts. Then form a dedicated LLC to own the properties, it will have no other business except that of the investments by the IRA.

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Changes To Canadian Principal Residence Reporting

Larry Stolberg

Prior to 2016, it was CRA’s administrative practice that the disposition of your principal residence was not reportable where the entire gain is exempt. There have been a few court cases where the administrative practice was not upheld because CRA Form T2091 was not filed.

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Changes To The Canadian Principal Residence Exemption

Larry Stolberg

On October 3, 2016 changes were announced to the computation of the available principal residence exemption. Changes were made to properties held by individuals and to properties held by trusts. Discussion below is limited to the changes affecting individuals. Changes to trust is more complex and may be addressed later.

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5 Key Considerations For U.S. Expats Living In The U.K.

Ephraim Moss

According to a report published by the United Nations, Department of Economic and Social Affairs, the number of Americans living in the United Kingdom was estimated at 212,150 in 2015. This represents a sizable group of Americans living in just one foreign country.

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AICPA Real Estate & Construction Conference – Construction Tax Planning Panel Discussion

Peter Scalise

2017 AICPA Real Estate & Construction Conference

Save The Date: December 7th – December 9th, Las Vegas, NV

Join Peter J. Scalise, the Federal Tax Credits & Incentives Practice Leader for Prager Metis CPAs, at the upcoming AICPA Real Estate & Construction Conference at the Wynn in Las Vegas, NV on Wednesday, December 7th between 4:00PM and 6:00PM for the Construction Tax Planning Panel Discussion.

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VP Tax And Tax Director Opportunities – Want An Introduction To One Of Our Private Clients?

VP Tax And Tax Director Opportunities – Contact TaxConnections Retained Search Services Division – 858.999.0053

Over the last couple of weeks, clients of http://www.etsearch.com/clients.htm which is now a division of www.taxconnections.com have contacted us on several VP Tax and Tax Director opportunities. In particular, we are searching for four separate clients requesting a VP Tax and Tax Director candidates in the real estate and energy sectors.

We will highlight a lead tax role from our portfolio of private retained clients this week. If you are aware of anyone who may have the type of experience mentioned below, please forward this message on to see if they know anyone who would Read more

Tax Advantages of Investing In Real Estate

As the economy shows signs of improvement, with the stock market rebounding and unemployment falling steadily, it is only reasonable to believe, all thing being equal, that the housing market will also rebound, and will once again become a very viable investment vehicle. There are a number of distinct tax advantages to be derived from investing in real estate, and this article will look at some of these advantages. For both middle and high-income individuals alike, the tax advantages of investing in real estate can be substantial. Some of the advantages are as follows:

Depreciation:

The IRS allows investors to depreciate (deduct from rental income) the cost of a residential rental building over a period of 27.5 years, and 39 years for nonresidential Read more

Tax Implications of Installment Sales

It seems more and more taxpayers are finding themselves compelled to engage in a structured installment sale of closely held business assets or rental real estate and I couldn’t help but notice that there are some common misconceptions about the associated tax implications, particularly if ‘related parties’ are involved in a transaction. So this is what I am telling people:

• Report installment sales on IRS Form 6252
• Report interest from installment sales on Schedule B
• Report capital gains from installment sales on Schedule D
• For more details refer to IRS Publication 537 or IRC 453 Read more

IRS Determines That Debt Secured By Wholely Owned Dissregarded Entity Qualifies For Income Exclusion on Workout

The Internal Revenue Service has issue Revenue Procedure 2014-20 which provides a safe harbor under which the IRS will, under certain defined circumstances, treat indebtedness that is secured by 100 percent of the ownership interest in a disregarded entity that holds real property as indebtedness that is secured by real property for purposes of § 108(c)(3)(A) of the Internal Revenue Code.

This revenue procedure will assist taxpayers with so-called “mezzanine” financing in workouts and similar circumstances.

Often borrowers incur debt in connection with real property used in a trade or business. If the debt is later discharged, the income from the discharge of indebtedness may be Read more

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