Tax Evasion In Real Estate Partnerships Is Huge According To Expert
With the record rise in residential and commercial real estate over the past few years their has been a great deal of profit for real estate partnerships. Now a former IRS agent and specialist in partnership taxation says that billions are going unreported to the government.
Either through the inaccurate reporting on the 1231 exchange tax form of capital gains or just plain failure to report income on a sale, some real estate investors are looking to bypass Uncle Sam and not give the devil government it’s due.
Now I am all for working hard to minimize ones tax bill, but my advice is to make sure that you do it legally. If you have claimed depreciation for 15 years on a property, report it. It is one thing to use every legal trick in the book to maximize your return. I applaud you. But if you end up being one of the 1 in 356 real estate partnerships that get audited, have your ducks in a row.
“Nationally, in 2005, at least $20 billion of gain from real estate tax shelters was unreported,” he said, “and in New York State, the epicenter of the business, the figure may be as high as $5 billion.”
Those figures suggest that the federal government was shorted $5 billion and New York State about $385 million from real estate tax shelter partnerships.
Just one form of real estate partner income, known as a 1231 gain after a section of the tax code, totaled $181.3 billion in 2005, up 87 percent over 2004. The actual gain, Mr. Curnutt said, was at least $232 billion and probably much more.via The New York Times.
Montreal Canada. L`ile bizard. Large private mansion with concrete pool, sauna, nested in woods. with 6 large garages ...
Great points Tom - the flavor of the day solution is only adding to the instability and volatility.
When Washington ...
I see it all too often where owners decide to be investors without understanding that tenants have rights. Its ...
cont from above post.....
please contact me via e-mail if interested in the home listed
above.
jonieckstrom@yahoo.com 
This is a topic currently being debated in our local Real Estate Board here in Toronto Canada. Online, we ...
A property management company should realize that most potential tenants now will have a foreclosure or bankruptcy on their credit....as ...
my boyfriend and i just fell for the scam ourselves, it's sad what they are able to do. I am ...
Now is an excellent time for business people to buy if they have decent credit (I did not say excellent ...
Pingback by Your Rental Property's Tax Benefits - Real Estate News - Banks.com on 24 January 2008:
[...] IRS decides to audit you. And beware of getting involved in shady real estate partnerships where tax evasion may be involved. Tax trouble will mess you up for years to come, so taxes should be taken very [...]
Pingback by Realestate - Your Rental Property’s Tax Benefits - Banking Blogs, Expert Advice on Goldparked.com on 6 June 2008:
[...] IRS decides to audit you. And beware of getting involved in shady real estate partnerships where tax evasion may be involved. Tax trouble will mess you up for years to come, so taxes should be taken very [...]
Pingback by Estate Tax Expert - Bend Oregon Real Estate ยป Bend Oregon Real Estate « Estate Tax Expert on 23 February 2009:
[...] Tax Evasion In Real Estate Partnerships Is Huge According To Expert The Real Estate Bloggers. Real Estate Blog, Mortgage, and Development News [...]
Pingback by Estate Tax Expert - Expert Realty - South Florida Real Estate Blog | Archive | Homeowners « Estate Tax Expert on 24 February 2009:
[...] Tax Evasion In Real Estate Partnerships Is Huge According To Expert The Real Estate Bloggers. Real Estate Blog, Mortgage, and Development News [...]