Whether you have questions relating to your directly or indirectly held investment in Real Estate or your personal residence, Prague & Company, P.C. can help you understand the various tax ramifications of the purchase, sale, and operation of your Real Estate holdings.

Perhaps you're invested alongside others in a partnership which owns a significant percentage of a commercial apartment building and you have questions relating to how the passive loss rules apply to you.  Or maybe you own two rental homes and you need to determine which one to sell in order to maximize after-tax profit.  In either case, knowledge of the various intricacies embedded in the tax code relating to Real Estate is essential in making decisions.

We have experience with the various tax issues that surface with regards to indirect or direct investment in Real Estate, such as:

INVESTMENT

• Choice of purchase entity
• Like-kind exchanges (IRC §1031)
• Partnership investments & the benefits of IRC §754
• Installment sales
• The passive loss rules
• Recaptured and unrecaptured forms of depreciation (IRC §1245, §1250, etc.)
• Recourse vs. non-recourse debt
• Proper treatment of closing costs (currently deducted vs. amortized vs. added to cost basis)
• State-specific statutes

INDIVIDUAL

• Exclusion of personal residence gain
• Vacation home rules
• Home Office deduction
• Estate tax concerns

For partnerships and other types of multi-investor vehicles owning real estate, we can provide Accounting & Bookkeeping services that will either track the day-to-day operations of your investments or provide internal financial statements for management from your books.  Additionally, our Private Equity & Limited Partnership Administration group can provide added services for larger-scale investors who need to outsource their accounting functions.

**The material contained on this web site is provided for information purposes only and is not intended to constitute legal or tax advice. The quality, timeliness, accuracy or completeness of any information at this web site, as well as its operation, is provided as is without representation, warranty or condition of any kind. All liability in respect of such information is disclaimed. Do not rely upon the information or apply it to your situation without first consulting Prague & Company, P.C. or other qualified professionals. Any reference or link to a third party is not an express or implied endorsement by Prague & Company, P.C. and Prague & Company, P.C. is not responsible for the materials on such linked third party web sites.