by ConvergeCPA | Feb 5, 2021 | Taxation of Income from US Real Estate
General Discussion of Taxation of Income from US Real Estate In general, foreign persons engaged in a trade or business in the United States, are taxed on two categories of income: 1. Income effectively connected with the conduct of a trade or business in the US...
by ConvergeCPA | Feb 5, 2021 | Passive Activity Loss Rules
Under the passive activities loss rules (PAL) – that is, activities in which you do not “materially participate”, tax losses from rental real estate activities cannot be deducted against non-passive activity income (such as salary, professional fees,...
by ConvergeCPA | Feb 5, 2021 | Tax Benefits
Many real estate professionals deal with the difficulties presented by the passive activity loss (PAL) rules. Regardless of how much time you spend working in your real estate activities, rental income or loss is generally considered passive and is subject to the...
by ConvergeCPA | Feb 5, 2021 | Medicare Surtax
Beginning January 1, 2013, the real estate industry will be faced with an additional 3.8% Medicare tax (the “Surtax”) that will add layers of complexity and more administrative burdens brought about by the Patient Protection and Affordable Care Act (Obamacare). The...
by ConvergeCPA | Feb 5, 2021 | QO Zone Policy, tax savings for investors
Exhibit 1. Comparison of After-Tax Accumulations with Equal Before-Tax Rates of Return, Four-Year Holding Period Exhibit 2. Comparison of After-Tax Accumulations with Different Before-Tax Rates of Return, Four-Year Holding Period Exhibit 3. Comparison of After-Tax...
