U.S. Tax Effects of Treaties in the Context of Foreign Investment in the U.S.

Introduction Foreign investors in the U.S. tend to have the same goals as their U.S. counterparts. Like U.S. taxpayers, foreign investors seek to minimize their income tax liabilities associated with their U.S. real estate and business investments. However, foreign investor’s objectives are clouded by the fact that they are not...

UNLIMITED LOSS DEDUCTIONS FOR REAL ESTATE PROFESSIONALS

Owning rental property may yield large financial gains in healthy markets.  Recently, however, fluctuations in the real estate and housing markets have produced conditions which can lead to great financial losses.  Because owning real estate is considered a “passive activity” by the tax code, there are certain restrictions and limitations...

TAX BENEFITS: UTILIZING A LIMITED LIABILITY COMPANY IN A REAL ESTATE VENTURE.

Date Published: Feb 09 San Francisco Business Times A limited liability company (LLC) combines certain advantages of corporations and partnerships. Like a corporation, an LLC and its members may enjoy asset protection benefits and personal liability protection from its creditors. For taxation purposes, the IRS classifies an LLC as a...

How to deduct unlimited real estate losses against other income while avoiding the pitfalls of tax laws.

Date Published: Dec 08 San Francisco Business Times The Law Offices of Stephen Moskowitz, LLP has seen a major increase in audits and one of the common red flags we are seeing are taxpayers deducting real estate losses against ordinary income. The Internal Revenue Code places constraints on netting real...