IRS makes it easier to deduct real estate activity losses

Under recently released IRS Revenue Procedure 2011-34, real estate professionals can now more easily make late elections to treat all interests in rental real estate as a single rental real estate activity. This election can help them retroactively meet material participation requirements and deduct losses, potentially generating

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Maintenance vs. Capital Improvement Can Mean Money

Property owners often wrestle with how to classify their repair and upkeep costs — are they routine maintenance costs, which are immediately deductible against current income?  Or are they capital expenditures that must be recovered over time through depreciation?  This article discusses proposed IRS regulations that would

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Guidance on qualified residence interest deduction

In Chief Counsel Advice (CCA), IRS has concluded that based on the legislative history of Code Sec. 163(h), until regs are issued, taxpayers may use any reasonable method in allocating debt in excess of the acquisition and home equity debt limitation, including the exact and the simplified

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Proposed passive activity loss regulations ease the definition of limited partnership interest, and extend it to LLC interests

IRS has issued proposed regulations that would provide a new definition of limited partnership interest for purposes of Code Sec. 469(h)(2), which treats limited partnership interests as passive interests for passive activity loss (PAL) purposes except as regulations provide otherwise. Observation: Under the new definition, more partnership

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Cost Segregation Study Key to Accelerating Tax Deductions

For those who have recently purchased or built a new building, or even substantially remodeled an existing building that they own, faster write-offs are only a cost segregation study away.  A cost segregation study identifies property components and their cost, allowing owners to maximize their current depreciation

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