by ConvergeCPA | Nov 19, 2014 | Blog
General Discussion of Taxation of Income from US Real EstateIn general, foreign persons engaged in a trade or business in the United States, are taxed on two categories of income:Income effectively connected with the conduct of a trade or business in the US (ECI), and...
by ConvergeCPA | Mar 25, 2014 | Blog
As the tenant of a retail space, you may receive funds from your landlord to make improvements, or construct the space you lease for your business. Fortunately, such funds, which are commonly referred to as a construction allowance, often are exempt from taxes under a...
by ConvergeCPA | Feb 6, 2014 | Blog, Foreign Financial Assets
Those who have business or personal ties in a foreign country prior to 2013, including foreign bank accounts, securities accounts, other financial accounts, or even signature authority over such an account must file special paperwork, namely Form TD F 90-22.1, also...
by ConvergeCPA | Dec 17, 2013 | Blog
On Sept. 13, 2013, the IRS released final regulations regarding the question of whether an expenditure relating to tangible property is a deductible repair or capital expenditure (commonly known as the repair regulations). The final regulations will affect all...
by ConvergeCPA | Sep 9, 2013 | Blog, PAL Rules, Real Estate, Real Estate Tax
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 | Sep 7, 2013 | Blog, Real Estate, Real Estate Tax
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 | Sep 7, 2013 | Blog, PAL Rules, Real Estate, Real Estate Tax
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...
