Event Description

The taxation of real estate can lead to some surprising results – especially when property is sold. Depreciation recapture can negatively impact a taxpayer’s taxable income in the year of the sale and lead to an unexpected tax bill. In this course, we will use practical examples and illustrations to explore the different types of recapture provisions pertaining to real estate. We will then discuss when relief may be available for a taxpayer who may have forgotten to take depreciation deductions in previous tax years.

Enrolled Agent Approved

Designed For

Tax and financial advisors who have clients who own rental real estate

Objectives

• Recall the tax attributes of 1231 property
• State the tax effects of 1245 and 1250 recapture provisions
• Recognize when Sec 291 recapture might be applicable
• Identify the tax effects of the “allowed or allowable” rule

Major Subjects

Required Knowledge: Basic understanding of tax rules for rental property, capital gains, and passive activities