Commercial Investment Real Estate Taxation

Expand your knowledge of taxation and watch your profits increase. This course explains how investment properties and the income and losses they produce are viewed by the Internal Revenue Service. Learn how losses can be used to offset the amount of gain to be reported upon disposition of a property.

After this course, you will be able to:

  • Identify the four Internal Revenue Code tax classifications of assets
  • Determine what tax classification should be applied given a commercial real estate property type
  • Understand what types of properties allow for cost recovery, capital gains, capital loss deductions, exchanges, and installment sales
  • Identify the conditions under which cost recovery (depreciation) may occur
  • Calculate depreciable basis given a property's assessed land and improvement values
  • Determine the varying cost recovery percentages for a property given the acquisition and disposition dates
  • Identify the three types of income subject to federal taxation and provide examples for each
  • Describe how income and losses within the three types of income baskets are treated for tax purposes
  • Describe how passive losses are treated for tax purposes given the Passive Loss Rule
  • Know the requirements needed for an investor to qualify for the rental real estate loss allowance
  • Identify who is affected by the Passive Loss Rule
  • Understand the difference between gains and losses from capital assets and those from 1231 assets
  • Identify the tax treatment for short-term and long-term capital gains and losses
  • Know how to net capital gains and losses in the portfolio basket

 

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