Real Estate

2015 Tax Planning Guide

New Year 2015 And Clock


Our 2015 Tax Planning Guide is now available. This online guide will give you access to updated tax and financial planning information throughout the year. Feel free to forward it to friends and family who you think might find it interesting or helpful. We hope this guide will prove to be a convenient resource for you throughout the year. Just a few of the topics covered in the guide are:


  • Roth IRA conversions
  • Bunching income and expenses as a year-end planning strategy
  • Planning for restricted stock and stock options
  • Planning for real estate investments
  • Succession and retirement planning for business owners
  • Charitable giving strategies


If you have any questions after reviewing the information presented, please do not hesitate to […]

FTB Updates Publication 1016 (Real Estate Withholding Guidelines)

California Revenue and Taxation Code Section 18662 and the related regulations require withholding of a 3 1/3% tax at the source from the sale or exchange of California real estate.  The California Franchise Tax Board (FTB) has revised FTB Publication 1016, Real Estate Withholding Guidelines. The revised publication, the purpose of which is to provide guidance on the withholding requirements for sales of California real property, covers the following topics:

  • General Information (e.g., definitions, a list or real estate withholding forms, what is the real estate withholding requirement, who is subject to it, when is real estate withholding not required);


  • Information for Sellers (e.g., exemptions for sellers, how to calculate withholding, seller’s filing requirements, electing out of withholding on installment payments);


  • Information for Buyers (e.g., […]

Travel Time Can Count for Real Estate Professional 750-Hour Test

In a recent Tax Court decision, the court held that Ellen P. O’Neill’s time incurred while travelling to her rental properties to perform various tasks could be used as a way to prove her 750-hour threshold to qualify as a real estate professional. The ruling in this case contradict Truskowsky, a prior Tax Court case in which the court refused to count travel time because it represents commuting that “is an inherently personal activity and as such does not constitute ‘work’ in connection with a trade or business.” The Court noted that the taxpayer was aware of the record-keeping requirements to establish real estate professional status and found she provided detailed, accurate, day-to-day explanations of the specific activities in which she engaged. Based on this […]

By |August 1st, 2015|Categories: Business Operations, Business Tax, Individual Tax, IRS, Real Estate|Tags: , , , , , , , |Comments Off on Travel Time Can Count for Real Estate Professional 750-Hour Test

New Escrow Closing Disclosure (CD) Replaces Settlement Statement (HUD-1)

New escrow disclosure forms have been introduced in the hope that they will help simplify the complex process of taking out a loan.  The Consumer Financial Protection Bureau (CFPB) refers to the new disclosure forms as the “Know Before You Owe” forms.  The new disclosure rules grew out of the Dodd-Frank Act requirements that addressed two sets of disclosures that consumers usually receive under the Truth in Lending Act (TILA) and Real Estate Settlement Practices Act (RESPA) in connection with application for and closing of mortgage loans.

The new “Closing Disclosure” replaces the Housing and Urban Development settlement statement (HUD-1) and final Truth in Lending (TIL) statement that must be provided to the consumer at least three business days prior to loan closing.

The new escrow disclosure […]

A Mortgage Broker is not Engaged in a Real Property Trade or Business

In a recent Chief Counsel Advice memorandum (CCA 201504010), the IRS concluded that mortgage brokers are not engaged in a real property trade or business for the purpose of qualifying as real estate professionals.  Real property trades or businesses are defined in the Internal Revenue Code to be “real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental operation, management leasing, or brokerage trade or business.” (I.R.C. § 469(c)(7)(C))

Taxpayers who qualify as real estate professionals are given an exception to the general rule that all rental activities are passive activities (and thus subject to passive loss limitations.)  A real estate professional is one who (1) performs more than half of his/her personal services in real property trade or businesses in which he/she materially participate, […]

By |May 25th, 2015|Categories: Announcements, Business Operations, IRS, Real Estate|Tags: , , , , , , , |Comments Off on A Mortgage Broker is not Engaged in a Real Property Trade or Business