Books


Federal Taxation of Real Estate

Standing Order with Automatic Update Service

Allan J. Samansky, James Charles Smith

Print + eBook

$419.00
Add To Cart

Federal Taxation of Real Estate offers practical guidance to help you uncover potential problems, apply appropriate remedies, and structure a transaction for maximum tax benefits. It examines fundamental and advanced aspects of deferring taxes and converting ordinary income to capital gain on real estate held for profit. It also looks closely at the tax treatment of personal residential purposes.

Topics include: limited liability companies; the passive activity rules; grants of mortgages to unsecured creditors; depreciation and its recapture; like-kind exchanges; wrap-around mortgages; involuntary conversions; sale-leasebacks; tax treatment of loan costs; amortizing start-up costs; capital gain and loss; use of a home for business or rental; the deductibility of state and local taxes on a principal residence; and the exclusion of gain on the sale or exchange of a principal residence.

Book #00590; looseleaf, one volume, 704 pages; published in 1985, updated as needed.
ISBN: 978-1-58852-029-6

Satisfaction Guarantee: You will always have a full 30 days from receipt in which to review any book. If you don’t want the book, simply return it in resalable condition within 30 days of receipt and write “cancel” on the invoice. If you paid by credit or debit card you will receive a full refund of the purchase price (excluding return shipping & handling). eBook returns are only available if the eBook has not yet been downloaded and updates made available during any subscription term are not refundable.
For more information about online access and our downloadable EPUB format see our FAQ.

  • Availability: Available
  • Brand: Law Journal Press
  • Product Type: Books
  • Edition: 0
  • Page Count: 704
  • ISBN: 978-1-58852-029-6
  • Pub#/SKU#: 00590
  • Volume(s): 1

Author Image
  • Allan J. Samansky
Allan J. Samansky is the Robert J. Watkins/Procter & Gamble Designated Professor of Law at the Moritz College of Law at The Ohio State University.


Author Image
  • James Charles Smith
James Charles Smith is the John Byrd Martin Professor of Law at the University of Georgia School of Law.

PART I
Introduction


CHAPTER 1
Overview

§ 1.01 Real Estate Used or Held in Connection with Profit-Oriented Activities
§ 1.02 Real Estate Used or Held for Personal Purposes

PART II
Acquisition of Real Property


CHAPTER 2
Choice of Ownership Entity

§ 2.01 General Principles
[1] Introduction
[2] Who Will Be the Owners?
[3] Type of Real Property
§ 2.02 Individuals
[1] Generally
[2] Alternative Minimum Tax
§ 2.03 Cotenants
[1] Advantages and Disadvantages
[2] Unintended Partnership
[3] Types of Cotenancies
§ 2.04 Partnerships
[1] Types of Partnerships
[2] Tax Advantages and Disadvantages
[3] Nontax Considerations
[4] What is a Partnership
§ 2.05 Corporations
[1] Tax at Corporate Level
[2] Retained Earnings
[3] Nontax Considerations
[4] Nontaxable Agent
§ 2.06 S Corporations
[1] General Principles
[2] When S Corporation Should Be Used
[3] Qualification as S Corporation
[4] Tax Advantages of Partnerships over S Corporations
[5] Tax Liabilities of S Corporations
§ 2.07 Limited Liability Companies
[1] Introduction
[2] Classification as a Partnership

CHAPTER 3
Basis Upon Acquisition

§ 3.01 Significance of Basis
§ 3.02 Types of Acquisitions
[1] Purchase for Cash
[2] Exchange
[3] Receipt in Satisfaction in Debt
[4] Gift
[5] Property Acquired from Decedent
[6] Exercise of Option
§ 3.03 Effect of Debt Financing
[1] Included in Basis
[2] Nonrecourse Debts
[3] Contingent Liabilities
§ 3.04 Allocation of Basis
[1] Among Separate Parcels
[2] Among Undivided Interests
[3] Between Land and Improvements
[4] Agreement of Seller and Purchaser

PART III
Ownership and Operation of Real Property


CHAPTER 4
Expenses

§ 4.01 Principles for Deduction
[1] In General
[2] Nondeductibility of Personal and Capital Expenses
[3] Distinguishing between Repairs and Capital Expenditures
[4] Capitalizing Legal Fees
[5] Investigatory and Start-up Expenses
[6] Uniform Capitalization Rules
§ 4.02 Interest and Property Taxes
[1] General Rules for Interest and Loan Costs
[2] Real Property Taxes
§ 4.03 Limitations on Deducting Interest and Property Taxes
[1] Prepaid Interest
[2] Investment Interest
[3] Capitalization of Interest and Taxes
§ 4.04 Limitations on Losses and Credits from Passive Activities
[1] In General
[2] Material Participation
[3] Rental Activity
[4] Allowance for Rental Real Estate Activities
[5] Special Rule for Taxpayers in Real Property Business
[6] Definition of Activity
§ 4.05 Limitation of Deduction to Amount at Risk

CHAPTER 5
Depreciation

§ 5.01 What is Depreciable—Land and Land Improvements
§ 5.02 Who Owns the Depreciable Interest
§ 5.03 Some Mechanics of Depreciation
[1] Introduction
[2] Determination of Annual Depreciation Deduction
[3] Effect on Basis
§ 5.04 Accelerated Cost Recovery System
[1] Introduction
[2] What Property Qualifies for ACRS
[3] Recovery Deductions
[4] Special Rules for Tax-Exempt Use Property
[5] Recovery Deductions for Property Placed in Service Before January 1, 1987
§ 5.05 Depreciation of Property That Does Not Qualify for ACRS
[1] Property Placed in Service Prior to 1981
[2] Other Property

CHAPTER 6
Tax Credits

§ 6.01 Qualified Rehabilitation Expenditures
§ 6.02 Credit for Low-Income Rental Housing

PART IV
Disposition of Real Estate


CHAPTER 7
Sale, Loss, or Abandonment of Real Estate

§ 7.01 General Principles
[1] Realization and Recognition of Gain or Loss
[2] Effect of Real Property Taxes on Amount Realized
[3] Losses
[4] Property Subject to Debt
[5] Options
[6] Obligation to Withhold by Purchaser
[7] Information Reporting
§ 7.02 Sale of Partial Interests
[1] In General
[2] Sale of Easements and Similar Interests
[3] The Special Case of Sales with Retained Interests
[4] Costs Allocable to Several Lots
§ 7.03 Capital Gains and Losses
[1] How Taxed
[2] Qualification for Capital Gain and Loss
[3] Holding Period
[4] Special Rule for Business Property and Involuntary Conversions
[5] Recapture of Depreciation
§ 7.04 Determining Who Is a Dealer
[1] In General
[2] Some of the Relevant Factors
[3] Sale to a Controlled Corporation
[4] Section 1237
§ 7.05 Foreclosure

CHAPTER 8
Installment Sales

§ 8.01 Deferral of Gain from Sale of Real Property
[1] Introduction
[2] Taxpayer’s Election
[3] Advantages of Installment Method
[4] Prepayment of Installment Obligation
§ 8.02 When Sale of Real Property Qualifies for Installment Method
[1] Excluded Installment Obligations
[2] Guarantees of Installment Obligations
[3] Installment Obligations Secured by Cash or Its Equivalent
[4] Dealer Dispositions
§ 8.03 Recognition of Gain Under the Installment Method
[1] How to Calculate the Gain
[2] Wrap-around Mortgages
[3] Like-kind Exchanges
[4] Contingent Payment Sales
§ 8.04 Original Issue Discount and Unstated Interest
[1] Introduction
[2] Unstated Interest
[3] Accrued Unpaid Interest
§ 8.05 Dispositions of Installment Obligations
[1] Sale or Exchange by Holder
[2] Gift or Other Transfer by Holder
[3] Satisfaction or Cancellation of the Obligation
[4] Reacquisition of Property by Seller
[5] Modification of Installment Obligation
[6] Resale of Property with Substitution of Obligors
§ 8.06 Installment Sales to Related Persons
[1] Resale of Property by a Related Person
[2] Installment Sale of Depreciable Property
§ 8.07 Reporting the Entire Gain in Year of Sale
[1] Generally
[2] Fixed Amount Obligations
[3] Contingent Payment Obligations
§ 8.08 Cost Recovery Method
[1] Generally
[2] Fixed Amount Obligations
[3] Contingent Payment Obligations

CHAPTER 9
Exchanges of Real Property

§ 9.01 General Principles of Like-Kind Exchanges
[1] Presumption of Recognition
[2] General Requirements; Mandatory Nature
[3] Advantages of Qualifying Exchanges
[4] Disadvantages of Qualifying Exchanges
§ 9.02 Qualifying Property
[1] Excepted Property
[2] Fee Simple
[3] Undivided Interests
[4] Leaseholds
[5] Life Estates and Remainders
[6] Options and Contract Rights
[7] Natural Resources
§ 9.03 Qualifying Purpose
[1] Generally
[2] Use of Transferred Property
[3] Use of Acquired Property
[4] Residential Property
[5] Dealers and Property Held Primarily for Sale
[6] Related Persons
§ 9.04 Exchange Requirement
[1] Simultaneous Exchanges
[2] Deferred Exchanges
[3] Reverse Exchanges
§ 9.05 Treatment of Nonqualifying Property
[1] Receipt of “Boot” by Taxpayer
[2] Payment of “Boot” by Taxpayer
§ 9.06 Carryover Basis
[1] How Calculated
[2] Taxation of Deferred Gain
[3] Holding Period of Replacement Property
§ 9.07 Character of Gain and Recapture of Ordinary Income
[1] Character of Recognized Gain
[2] Recapture of Depreciation: Section 1245
[3] Recapture of Depreciation: Section 1250
[4] Deferral of Recapture

CHAPTER 10
Involuntary Conversions

§ 10.01 When Nonrecognition is Available
[1] Introduction
[2] Inapplicable to Loss
[3] Taxpayer’s Election
[4] Advantages of Replacement
§ 10.02 Types of Involuntary Conversions and Amount Realized
[1] Destruction of Property
[2] Involuntary Transfers of Property
[3] Excess Land in Irrigation Project
§ 10.03 Who Must Replace Converted Property
[1] Death of Owner
[2] Trusts
[3] Partnerships and Corporations
§ 10.04 Replacement Property
[1] Generally
[2] Similar or Related in Service or Use
[3] Condemnation of Real Property
[4] Corporate Shares
[5] Personal Residences
[6] Acquisition from Related Person
§ 10.05 Time Period for Replacement
§ 10.06 Recognition of Gain
[1] When Recognized
[2] Character of Gain and Recapture of Depreciation
§ 10.07 Basis of Replacement Property

PART V
Leases


CHAPTER 11
Basic Rules for Rent

§ 11.01 Payments of Rent
[1] Deductibility of Rent
[2] Substance and Form
[3] Net Leases
[4] Special Timing and Characterization Rule
[5] Self-Employment Income
§ 11.02 Expenses Incident to Lease
§ 11.03 Advance Rent
[1] General Rules
[2] As Distinguished from Security Deposits and Loans

CHAPTER 12
Improvements on Leased Property

§ 12.01 Improvements Built by Lessee
[1] Characterization as Rent
[2] Construction Allowances
§ 12.02 Recovery by Lessee of Costs Connected with Leasehold Improvements
[1] Recovery of Capital Investment
[2] Recovery of Capital Investment for Property Placed in Service Before January 1, 1987
[3] Capital Improvements or Repairs
§ 12.03 Recovery by Lessor of Costs Connected with Leasehold Improvements

CHAPTER 13
Acquisition and Disposition of Lease or Property Subject to Lease

§ 13.01 Assignment of Leaseholds
[1] Tax Consequences to Assignor
[2] Tax Consequences to Assignee
§ 13.02 Termination of a Lease
[1] Payments by Lessee to Lessor to be Relieved of Obligations Under the Lease
[2] Payments by Lessee to Lessor to Purchase Fee
[3] Payments by Lessor to Lessee to Cancel the Lease
§ 13.03 Acquisition and Sale of Real Property Encumbered by Lease
[1] Tax Consequences to Seller
[2] Tax Consequences to Purchaser
[3] Allocation of Rent

CHAPTER 14
Sale-Leasebacks

§ 14.01 When Useful
[1] Introduction
[2] Basic Tax Considerations
[3] Nontax Considerations
[4] Leveraged Lease
§ 14.02 Disallowing the Loss in a Sale-Leaseback
[1] Introduction
[2] The Cases
[3] Conclusions
§ 14.03 Disregarding the Sale-Leaseback Form
[1] Introduction
[2] Frank Lyon Co. V. United States
[3] Analysis of Frank Lyon Co.
[4] Post-Frank Lyon Cases

PART VI
Owner-Occupied Housing


CHAPTER 15
Deductions and Credits

§ 15.01 General Disallowance of Personal Expenses
§ 15.02 Deduction of Interest on Mortgage Loans
[1] Qualified Residence Interest
[2] General Definition of Interest
[3] Interest Paid to Acquire Loan
[4] Interest Paid During Loan Term
§ 15.03 Real Property Taxes
§ 15.04 Casualty Losses
[1] Introduction
[2] What Is Casualty
[3] Amount of the Casualty Loss
[4] Limitations on Casualty Loss Deduction
§ 15.05 Tax Credits
[1] First-time Homebuyer Credit
[2] Credit for Mortgage Interest for First-time Buyers
[3] Credit for District of Columbia First-time Buyers
[4] Residential Energy Credits

CHAPTER 16
Special Types of Commonly Held Property

§ 16.01 Condominiums
[1] Form of Ownership
[2] Taxation of Unit Owners
§ 16.02 Cooperative Housing
[1] Form of Ownership
[2] Cooperative Housing Corporation
[3] Tenant-Stockholder
[4] Type of Property Owned by Corporation
[5] How to Calculate Deduction
[6] Business Depreciation of Stock
§ 16.03 Time-Sharing
[1] Form of Ownership
[2] Taxation of Time-Share Owners
§ 16.04 Homeowners Associations
[1] Purposes of Association
[2] Tax Consequences
[3] Tax Exemptions

CHAPTER 17
Business and Rental Use

§ 17.01 Business Use: The Home Office
[1] Scope and General Requirements
[2] What Are Home Office Expenses
[3] Definition of Home Office
[4] Principal Place of Business or Alternatives
[5] Deductions by an Employee
[6] Storage of Inventory
[7] Day-Care Services
[8] Allocation of Business Expenses to Home Office
[9] Limitation on Deductions
§ 17.02 Rental Use of Dwelling Units
[1] Introduction
[2] Allocating Expenses Between Personal and Rental Use
[3] Effect of Excessive Personal Use
[4] Avoiding Rental Income Limitation for Residence
[5] Profit Motivation for Rental Activity
[6] Rental of Portion of Dwelling Unit

CHAPTER 18
Gain on Sale

§ 18.01 Exclusion of $250,000 or $500,000 of Gain
§ 18.02 Eligible Owners of Principal Residences
§ 18.03 Definition of Principal Residence
§ 18.04 Ownership and Use
[1] Period of Use
[2] Period of Ownership
[3] Married Taxpayers and Form of Ownership
§ 18.05  Sale by a Surviving Spouse
§ 18.06 Waiting Periods
[1] Two-Year Waiting Period
[2] Like-Kind Property
§ 18.07 Sale of Limited Interest
§ 18.08 Hardship Exception to Ownership, Use, and Waiting Period Rules
§ 18.09 Recapture of Depreciation
§ 18.10 Home Office Use and Rental Use
§ 18.11 Bankruptcy

Table of Cases
Index