This is a continuation of our discussion of the final versions of the House and Senate Tax Cuts and Jobs Act (sic) bill. Those are now the law of the land, PL 115-97.
No, I am not talking about events from the Middle Ages, but how the IRS wants us to consider assets that we’ve sold. This question also comes up when folks do their own taxes and sold an asset. All those tax computer programs ask…. “Is the asset Section 1231 property, Section 1245 property, or Section 1250 property?” Like the taxpayer understands these concepts. Or- that they are not mutually exclusive.
They’re ba-ack… Not the poltergeists, although many of you may consider them part of the genre…No, it’s the required annual tax filings…
For years, the one crucial question I had to ask my business tax clients was, “Can you be considered to be a real estate professional?” (If you don’t recall my discussions on this matter, you can refer to my blog posts here and here.) Because without that certification, it’s possible that all expenses involved in rental real estate operations may not be deductible on one’s Schedule E (1040).