Posts in Tax Law
American Families Plan and Real Estate Investments – 1031 Exchanges

The American Families Plan proposes ending the ability for investors to use Section 1031 to defer taxes on gains greater than $500,000. Business owners and real estate investors can take action now to minimize the tax impact of this and other proposed tax changes.

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American Families Plan and Real Estate Investments–Capital Gains and Carried Interests

The American Families Plan proposes the elimination of the long-term capital gains rate. If passed as proposed, these tax changes are likely to reduce transaction volume and shift real estate investment focus from long-term gains to short-term returns.

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Revenue Procedure 2019-38 and the Rental Real Estate Safe Harbor under Section 199A

On September 24, 2019, the IRS issued Revenue Procedure 2019-38, which provides a safe harbor under which income from rental real estate will be qualified business income under Section 199A.

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How Struggling Orchestras are Like Qualified Opportunity Zone Funds

On July 15, 2019, SEC and NAASA recently released a Joint Summary of securities law concerns for Qualified Opportunity Zone Funds. Although these funds can provide significant tax benefits, fund sponsors must be careful to comply with securities laws when selling them to investors.

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Leaving a String Quartet or Tenant-in-Common Real Estate Investment

Originally in residence at Cleveland Institute of Music, the Cleveland Quartet moved together as a quartet to State University of University of New York at Buffalo and then to Eastman School of Music. During the quartet’s history, some musicians left the quartet and were replaced.  But in 1995, the quartet decided to disband. Years of international travel had taken their toll, and the musicians wanted to pursue other interests including, teaching and orchestral work. Real estate co-owners may make similar decisions to change investments or terminate their relationship.

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Recognizing Tax Collection Scams

A few weeks ago, I received a voicemail on my cell phone from someone who said he was with the IRS. He claimed I owed past due taxes and that I needed to call back immediately to prevent criminal prosecution for tax evasion. Fortunately, I recognized the call as a common tax collection scam.

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