Federal and state taxation, including proposed regulations
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Chicago’s Proposed Documentary Transfer Tax Increase Hits a Roadblock
The Chicago chapter of the Building Owners and Managers Association (BOMA) filed a lawsuit last week to block a referendum vote on Mayor Brandon Johnson’s proposal to increase documentary transfer taxes on real estate property sales. Documentary transfer taxes in Chicago are currently imposed at a flat rate of 0.75% on the sales price of […]
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Our Top 10 Blog Posts of 2023
The end of the year is a great time to reflect on the year that was and to express gratitude for those that made an impact on our lives. On behalf of my colleagues and fellow bloggers, Courtney DeVane, Brian Duren and Jeremy Siebert, we sincerely thank you for your loyal readership and engagement. In […]
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Workforce Housing Tax Credit Introduced in Congress
Earlier this month, Senate Finance Committee Chairman Ron Wyden (D-OR), Senator Dan Sullivan (R-AL), and Representatives Jimmy Panetta (D-CA) and Mike Carey (R-OH) jointly introduced the Workforce Housing Tax Credit (WHTC) Act. The proposal aims to increase the supply of affordable housing for middle-income families, generally deemed as those who earn too much to qualify […]
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The Power of the Real Estate Professional
In general, rental activities are passive activities even if a taxpayer materially participates in them. But, if a taxpayer qualifies as a real estate professional, the rental real estate activities in which the taxpayer materially participates are not considered passive activities. To say it differently, a real estate professional who materially participates in a real […]
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Reporting Like-Kind Exchanges to California
The State of California generally conforms to Internal Revenue Code Section 1031, as revised by the Tax Cuts and Jobs Act of 2017.1 Like-kind exchanges are reported on California Form 3840 when there is an exchange of one or more California real properties for one or more real properties located outside of California; and if […]
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It’s Year-End…Let’s Find Some Deductions!
Fixed asset reviews and repair and maintenance studies can be effective tools in year-end tax planning. Prior to December 31, 2022, taxpayers were able to benefit from 100% bonus depreciation on certain assets for federal and (possibly) state income tax purposes. The amount of allowable bonus depreciation began to be reduced effective January 1, 2023. […]
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Transforming the Sunshine State: Exploring the Impact of Senate Bill 264 on Foreign Ownership in Florida’s Real Estate
Florida law limits certain foreign buyers from acquiring real property in the state.
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Partnership Mergers
When two or more partnerships combine, the transaction may be considered a termination of each of the partnerships, except to the extent that the partners of one partnership end up with more than 50% ownership of the capital and profits of the resulting partnership. If more than one partnership can meet the test because of […]
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Planning for Deferred Tax Liabilities on Opportunity Zone Investments
Opportunity zone investors are schedule to recognize significant tax liabilities on deferred gains invested into qualified opportunity funds. Determining strategies to manage or minimize these taxes is a critical action in the OZ toolkit.
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Tax Basis Capital Account Reporting Now Required by California
Beginning with the 2023 tax year, and for every taxable year thereafter, the California Franchise Tax Board (FTB) will require taxpayers who file Form 565 or Form 568 to report its partners’ or members’ capital accounts on the Schedule K-1 using the tax basis method as determined under California law. The FTB instructs taxpayers to […]