Archive | Real Estate

1031 Exchange

Foreign Investment in Tennessee Real Estate Creates Tax Questions

Foreign investment in Tennessee (TN) real estate continues to rise. It seems that foreign investors have a healthy appetite for a variety of real estate, including apartment buildings, single family homes, and commercial buildings. With the new growth in the US real estate market, this investment stands to increase in the coming years. But many […]

How are real estate flips taxed?

People who buy and sell (or “flip”) real properties often call themselves real estate “investors”.  But this may not be a correct definition in the eyes of the IRS.  The IRS will often seek to determine whether these taxpayers are operating as “dealers” or “investors”.  Should you be classified as a dealer, you are deemed […]

Tips Tips: IRS Real Estate Professional?

Someone may call themselves a real estate professional, but there is a strict definition of an IRS real estate professional. Why is this important?  Well let me explain. In general, real estate rental activities are considered passive activities even though you may materially participate in them. In this case, you are able to deduct up […]

What is Qualified Nonrecourse Financing?

When you are a partner in a partnership, you need to pay close attention to the Form K-1 that you receive at the end of the year.  As it relates to partnership liabilities, there are three types to consider: (1) recourse; (2) nonrecourse; and (3) qualified nonrecourse financing.  Much has been said and written about […]

U.S. & China Tax Treaty on Income from Real Estate

The U.S. has a tax treaty in place with China.  This treaty governs many issues, including the taxation of income from real estate holdings.  It is addressed specifically in Article 6 of the treaty.  The information below is an excerpt of Article 6. UNITED STATES-THE PEOPLE’S REPUBLIC OF CHINA INCOME TAX CONVENTION Agreement And Related […]

Real Estate Crowdfunding: Understanding Sponsor Fees

Real estate crowdfunding has been growing in popularity.  The benefits are great to both the investor and the syndicator (or “sponsor”).  Sponsors can benefit from greater access to investor funds, while investors can benefit from pooling their funds to acquire real estate projects that would not normally be available to them. Sponsors typically make money […]

How Are Non-Resident Aliens Taxed?

How Are Non-Resident Aliens Taxed? Resident and nonresident aliens are taxed in different ways. Resident aliens are generally taxed in the same way as US citizens. Nonresident aliens are taxed based on the source of their income and whether or not their income is effectively connected with a US trade or business. A nonresident alien’s […]

Buying US Real Estate

Real Estate Crowdfunding: The Role of the Sponsor

The entity that acquires, maintains, manages and ultimately sells the real estate is called the “syndicator” or “sponsor”. These terms will be used interchangeably. A typical syndication combines the money of individual investors with the management of the sponsor, and has a three-phase cycle: origination (planning, acquiring property, satisfying registration and disclosure rules, and marketing); […]

Understanding State Taxation of Tangibles & Intangibles

Federal tax law is difficult enough to understand.  But state tax law can be even more cumbersome, especially considering the variation from state to state.  Upon closer examination though, there are some general themes that one can examine as it relates to state taxation.  The goal herein is to examine a few of these differences. […]

Real Estate Crowdfunding: Depreciation is the Investor’s Best Friend

Real estate crowdfunding is becoming a very popular way for investors to get into the real estate market.  They don’t have to manage the day to day operations of the property, but will be able to obtain cash flow and a percent of the profits upon disposition.  Most real estate investors understand the basics of […]