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How can lease options help me in this slow economy?

Property owners who’ve had trouble locking down sales are offering potential buyers a gradual approach to purchasing their property — lease options. Although a lease option may not be the ideal structure for a sales transaction, it offers some attractive benefits, especially in today’s down market. This

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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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Health care law: impacting businesses and individuals — and their taxes

On June 28, the U.S. Supreme Court generally upheld the Patient Protection and Affordable Care Act of 2010. The decision has far-reaching implications, many of which will financially impact businesses and individuals. This article provides a brief overview of the decision and its financial impact on businesses

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IRS Audit Red Flag

The IRS audits only slightly more than 1% of all individual tax returns annually. The agency doesn’t have enough

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Taxpayer couldn’t modify purchase price allocations after cost segregation study

The Tax Court has concluded that a taxpayer could not modify purchase price allocations that it agreed to in connection with two asset acquisitions.  The taxpayer made the modifications in an attempt to secure quicker depreciation deductions following a cost segregation analysis.  The Court concluded that IRS

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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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Don’t Run Afoul of the Securities Act When Raising Private Money

People are rarely sued when a deal goes as planned and all financial expectations are met.  But we rarely structure deals and form legal entities for the best-case scenarios.  We structure them to protect us from the worst-case.

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Flipper’s ® investment analysis software update

We recently updated the Flipper’s ® analysis software with new features.  One such addition is a new option to present reports on a before or after-tax basis.  Please visit the following “What’s New” link to view the recent change description. http://www.rentalsoftware.com/Flipper-Upgrade-Features.htm

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