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Its tax time again. Although filing taxes can be a tedious and frustrating time for many Americans, real estate investors fall into particularly complex categories. Knowing the structure of your property business can save time and money when it comes time to file.

Kevin Walsh, CPA is an expert on all things real estate when it comes to tax structures and filing. A founding member of Atrox Partners accounting services, Kevin has over 15 years experience specializing in real estate, providing consultant services for investment and brokerage firms. This episode, Kevin discusses the importance of structuring your property business to maximize your tax returns. Kevin also discusses big changes coming to foreign investing in U.S. real estate.

Real Estate Filing Structures:

1. Business of Real Estate
   1. Realtors; Brokers; Industry Servicers
   2. Most favorable tax structure
2. Investor
   1. Applicable to small and large-scale investors
   2. Subject to loss-limitations ($3000 max)
   3. Capital Gains/Losses advantages and disadvantages
3. Dealer
   1. Fix-and-Flip deals; high frequency of deals
   2. Gains taxed as ordinary gains; not offered Capital Gains/Losses filing structure

• Tax Tips for Investors
  • Knowledge is Power – Planning for your taxes is imperative. It is best to consult an expert to ensure the proper tax structure
  • Documentation – Filers need to verify they are filing within the appropriate structure; provide proof of your property business
  • Preparation – Prepare for taxes early…know your filing structure…certain filing limitations begin at close of each tax year

Foreign Investing:

• Protecting Americans for Taxes Act, 2015 (PAFT)
  • Revisions to previous FIRPTA, outlining terms and stipulations for foreign real estate investors
  • 2 Provisions: 10% sur-tax on foreign investors abolished; 5% allotment for foreign investors now increased to 10%
  • Poised to bring influx of foreign capital into U.S. markets

Contact Kevin:

info@atroxpartners.com