Author archives: Janie Evans

September 13 , 2018 | Posted by Janie Evans |

Do You Still Need to Worry About the AMT?

There was talk of repealing the individual alternative minimum tax (AMT) as part of last year’s tax reform legislation. A repeal wasn’t included in the final version of the Tax Cuts and Jobs Act (TCJA), but the TCJA will reduce the number of taxpayers subject to the AMT.

Now is a good time to familiarize…

September 26 , 2017 | Posted by Janie Evans |

IRS Issues Proposed Regulations on Partnership Audit Rules

Buried in a budget bill in late 2015 lay a repeal of the current rules governing partnership audits and replacing them with a new centralized partnership audit regime that, in general, assesses and collects tax at the partnership level.  The IRS was tasked with issuing regulations for the implementation of the rule.  In mid-June IRS…

January 19 , 2017 | Posted by Janie Evans |

IRS Issues New Regs on Allocating Debt to Partners and LLC Members

The IRS released new temporary and final Section 752 regulations on October 5, 2016. Sec. 752 of the Internal Revenue Code and related regulations explain how to allocate partnership debt among partners for purposes of calculating the basis of their partnership interests, which determines their basis for deducting losses and receiving tax-free distributions. In this article,…

September 19 , 2016 | Posted by Janie Evans |

FIRPTA – Do you know who your seller is?

FIRPTA is the Foreign Investment in Property Tax Act, which dates back to 1980. Recent legislation has increased the general withholding rate on foreign sellers of property from 10% to 15% effective for closings on or after February 16, 2016.

Among the many documents which are presented and processed during escrow is a certificate of…

Real Estate Investor or Dealer – What is the difference?

There are many areas of uncertainty in the Internal Revenue Code (IRC) and real estate activities, many times, fall into these “gray areas”.  However, if you scratch the surface a bit, you will find a substantial amount of case law that has developed over the years to provide guidance for tax planning.

The real estate…

January 13 , 2016 | Posted by Janie Evans |

PATH Act Brings Tax Relief for Real Estate and Construction

When President Obama signed the Protecting Americans from Tax Hikes (PATH) Act in late December, the first significant tax legislation since 2012 became law. While late year extenders Acts are nothing new, this legislation brought permanent change to several areas of the tax code. The PATH Act extended more than 20 key tax provisions permanently…

September 8 , 2015 | Posted by Janie Evans |

Section 1031 Like-Kind Exchanges Provide Economic Benefit

Recent tax reform proposals would repeal or restrict like-kind exchanges under section 1031 of the Internal Revenue Code (“Code”).  Like-kind exchanges allow taxpayers to defer taxes when one property held for productive use in a trade or business or for investment is exchanged for property of like-kind which is to be held either for productive…

May 11 , 2015 | Posted by Janie Evans |

Do You Know The Tax Implications of Debt Financed Distributions?

Owners of appreciated real estate oftentimes are able to cash-out the equity by refinancing the property. When a partnership or S-corporation uses loan proceeds to make a distribution to its owners, the distribution is called a debt financed distribution. The IRS requires the recipients of the distribution to trace their use of the funds received…