Category: Real Estate Law

In our recent post on the Windham v. Commissioner case, we described how a stockbroker who worked only a few hours a day at Wells Fargo was able to qualify as a real estate professional due to the extensive time she spent managing her numerous properties. The Tax Court was...

A common misconception about 1031 exchanges is that they can only be conducted in one manner – a sale and then a purchase through a third party facilitator. In fact, 1031 exchanges have evolved to include numerous tax strategies and structures. Here are a few of the many ways to...

Qualifying as a real estate professional can be the difference between being able to deduct losses from your real estate activities and having passive activity losses that you cannot deduct. For a Florida stockbroker with real estate losses of $307,933 in 2010, qualifying as a real estate professional was definitely...

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...