Shared-equity financing arrangements can help individuals acquire homes they might not otherwise be able to afford, but care should be taken with the tax planning aspects.
The IRS and taxpayers have struggled with what constitutes a real property trade or business.
This article lays out the steps for determining whether a taxpayer qualifies as a real estate professional.
This item discusses a tenancy in common and what this type of ownership entails.
The IRS ruled on two situations involving individual taxpayers who had debt forgiven on property used in their real property trades or businesses.
Provisions of the Protecting Americans From Tax Hikes Act of 2015 changed the tax treatment of dispositions of investments in real property by foreign taxpayers.
Properly planning for a real estate transaction is imperative to lowering tax expenses and increasing returns for investors.
A recent Tax Court decision sheds light on the importance of lease terms to determine what is rent and how Sec. 467 may apply to advance rents.
Recent court decisions are reminders that land may not always be a capital asset that gives rise to a capital gain when sold. Land may also be held for sale to customers in the ordinary course of business, in which case gain on the sale of the land will be ordinary income.
IRS Provides Guidance on Interplay of Rental Real Estate Grouping Election and Real Estate Professional Exception
The IRS Office of Chief Counsel advised on the interaction of the rental real estate grouping election and the real estate professional exception to passive activity loss rules.
The interaction of Secs. 469 and 1411 present special challenges for real estate professionals and their advisers.
Qualifying as real estate professionals allows taxpayers to avoid having their rental real estate activities treated as per se passive. This article discusses the requirements for qualifying as a real estate professional and how the requirements have been interpreted by the IRS and the courts.
The Tax Court held that a married taxpayer who filed a separate return did not qualify as a real estate professional through attribution of her husband's activities, and therefore she could not deduct her rental real estate losses.
Determining whether a real estate sale produces ordinary income or capital gain is difficult and is potentially an issue that can cause a taxpayer to be liable for significantly higher taxes.
This item addresses a situation that often arises in today’s economic climate: a short sale of real property held for investment, not for rental, secured by a recourse note.
This item reviews recent IRS guidance on how certain taxpayers can make a late election to treat all interests in rental real estate as a single rental real estate activity.
Editor: Kevin F. Reilly, J.D., CPA One of the first decisions taxpayers must make when planning their estates is what to do with the principal home. With the changing and sometimes downtrodden real estate market, this can be a difficult and time-consuming task for heirs, particularly if they do not
Editor: Frank J. O'Connell, Jr., CPA, Esq. With the slowdown in the real estate market continuing, many taxpayers with investments in undeveloped real estate are attempting to find creative ways to realize the built-in profit on their existing holdings. This planning may involve a real estate developer’s attempting to sell
It would be a bad dream for any homeowner: selling a home when the debt that secures the property is greater than its fair market value (FMV). With the real estate market slowing, more homeowners are discovering that this can actually happen. When the real estate market was booming, homeowners
As part of the Tax Reform Act of 1986, Congress enacted Sec. 469, limiting passive activity losses (PALs). As a general rule, PALs can only be offset against income from other passive activities; such losses cannot be offset against nonpassive income, such as dividends, interest, wages or most Schedule C