Archive - January 2014
Failed Related Party Real Estate Installment Sale in Cordell D. Pool v. Com’r
Real estate investors desire capital gains treatment. Actually receiving such capital gains treatment, however, proves to be difficult particularly when development activities are afoot. The Cordell D. Pool case (T.C. Memo. 2014-3) that came out yesterday presents a cautionary tale to opportunistic private real estate funds that have their hands entrenched in development activities, whether through related, or third-party developers. The facts of the case involve a relatively typical related party installment sale transaction whereby the putative investor purchases land and then sells...
January 09, 2014 read more
Net Investment Income Tax and Tax Distributions
Now when the New Year celebrations are out of the way, more prosaic duties poke their head around the corner, such as, Tax Time. Depending on the investment fund, K-1s may start rolling out in late February or March, if investors are lucky. This year, funds and their investors will have to deal with yet another tax, the net investment income tax (NIIT). This tax is brand new and the IRS forms and instructions are still being finalized. One thing is clear though, that investment funds will have to provide investors with enough information so that investors can compute their NIIT. Investors...
January 02, 2014 read more