Crucial Real Estate Tax Strategies

Overview

Join Greg White and George Koutelieris, CPAs, as they walks through strategies for purchasing real estate, passive activity rules (including the exceptions for real estate professionals and short-term rentals, the self-employment tax exception for rental real estate, partial disposition losses, converting nondeductible interest expense to deductible interest expense, and like-kind exchanges. They’ll also cover how to break out the purchase price apportioned to improvements into its components: Building, land improvements and personal property. Finally, they’ll cover common issues with Airbnb properties and take a deep dive into claiming bonus depreciation, section 179 and de minimis deductions on real estate.

Highlights

Apportionment of purchase price. Bonus depreciation, section 179 and de minimis expensing for real estate. Financing considerations, including whether clients should make the real property election out of section 163(j). Partial disposition losses. Deducting removal costs. Depreciating property acquired in a like-kind exchange. Converting nondeductible interest expense into deductible interest expense.. Section 199A for rental real estate. Revenue Procedure 2019-38 “safe harbor” for rental real estate. Aggregating rental properties.

Prerequisites

None

Designed For

CPAS and tax practitioners

Objectives

Recognize the mechanics of apportioning purchase price as part of a purchase and sales agreement. Identify property that qualifies for bonus depreciation, section 179 and de minimis expensing. Identify method to convert nondeductible interest into deductible interest expense. Recognize how to compute partial disposition losses. Recognize how to compute depreciation for property acquired in a like-kind exchange. Identify strategies for maximizing the QBID on real estate. Identify circumstances where the “safe harbor” for rental real estate may be beneficial to your clients. Identify appropriate circumstances for aggregating rental property for QBID purposes. Identify real estate professionals. . Compute real estate losses allowed for active participants. Identify strategies for participating in like-kind exchanges.