Category: Real Estate Law

In our last post, we explained how an architect proved to the Tax Court that he qualified as a real estate professional, and was subsequently permitted to deduct passive activity losses from his real estate activities. Here, we focus on the attempt of another person to do the same --...

Investors are limited in their ability to offset income with passive losses, and even real estate investors who “actively participate” in their rentals (through management, capital improvements, selection of tenants, negotiation of leases, etc.) have a maximum $25,000 offset. However, 26 U.S. Code § 469(c)(7) provides special rules for real...

The new tax law ( 2017 TCJA) is great news for the commercial real estate industry.  Owners of pass-through entities may deduct up to 20 percent of their business income on their tax return, subject to certain limits, and increased deductions for capital expenditures will shield income for property owners...