Bruce D. Kowal
What REALLY Triggers IRS Attention in Real Estate Partnerships - From An Onlooker
29 January 2025 | 6 replies
Syndication Reporting IssuesMissing Form 8918 for reportable transactionsInconsistent investor disclosuresRequired registrations skippedWhat Doesn't Actually Matter:(Despite What Your Uncle's CPA Says)Special AllocationsNormal promote structuresStandard waterfall provisionsTypical developer promotesReality: Unless extremely aggressive, IRS rarely caresTechnical DocumentationMinor Ā§704(b) gapsCapital account glitchesTechnical allocation languageTruth: Unless hiding something biggerProperty Value AllocationsNormal basis step-upsTypical appreciation splitsStandard promote calculationsReal World Example:š¢ 100-unit apartment complex4 partners, $5M dealDeveloper promote structure= Zero IRS interestSame Deal With Red Flags:š¢ 100-unit apartment complexHidden partner arrangementsArtificial loss allocationsUnreported debt shifts= IRS AttentionPractical Protection Steps:Basic Documentationā
Clean operating agreementā
Economic substanceā
Partner contributions tracked(Don't need War & Peace complexity)Economic Realityā
Allocations match economicsā
Real money movementā
Actual partner participationClean Reportingā
Consistent K-1sā
Required forms filedā
Clear communicationThe "Sleep Well" Test:Can you explain your structure to an IRS agent without sweating?
Matt Williams
sell or hold duplex?
20 January 2025 | 4 replies
For instance, you could look into refinancing the property to access some of its equity while still maintaining ownership and cash flow.
Tristan Kublanov
How to get more leads
14 January 2025 | 3 replies
I have been filling my pipeline for the past 4 months but everything thus far has fell apart.
Kyle Carter
Developing in Washington DC
23 January 2025 | 1 reply
I would love to get a property in the NW DC that is run down, add additional floors and then make it an apartment building.
John Reagan Johnson
Connecting with Real Estate Agents
22 January 2025 | 5 replies
IĀ am a part of TNREIA and REIN, but I'm curious to hear if there are any other groups or events IĀ can attend to make connections.
Don Konipol
Passive Investor Strategies vs Active Investor Strategies
24 January 2025 | 3 replies
I has two GREAT property managers that immediately come to mind, one handling 5 high end high rise condos I owned in Phoenix and the other one handling a 12 unit very lower end apartment building I owned in Arlington, Texas.Ā Ā
Salvatore Ross
Ideal Property to Manage
25 January 2025 | 8 replies
If you have access to someone who is ready to trust you with their asset, do right by the owner andĀ go for it!
Luke Paez
Turning Ambitions into Assets
26 January 2025 | 3 replies
I own 32 properties myself and have bought and sold over 300, including a few apartment complexes.
Polat Caglayan
about section 8
21 January 2025 | 1 reply
If you are referring to Section 8 housing, that can be any apartment or house in the US.
Beau Wollens
First time fix and flip opportunity in Stamford Connecticut - Total Gut Renovation
29 January 2025 | 13 replies
The past tenant was a hoarder and the apartment has not been lived in or touched since 1999 (26 years)!Ā