Changes to IRC section 179 benefit residential landlords

Article Abstract:

Section 11813(b)(11)(A) of the Revenue Reconciliation Act of 1990 removed the investment tax credit requirement from the IRC section 179 property definition to include lodgings. However, only individuals and C and S corporations are eligible, estates and trusts are excluded, and individuals have limitations. Section 179 allows landlords to immediately deduct up to $10,000 of 179 property with the rest deductible over the next eight years. Deductions are not increased but the scheduling is advanced. Individuals must comply with the 15% landlord expense and 50% lease term requirements.

Taxation, Landlords

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Tax consequences of mortgage points

Article Abstract:

IRS Revenue Procedure 92-12 announced changes in the deductibility of mortgage points paid to a lender. Points, which equal 1% of a loan, are either service-related and interest-related. Whereas only interest-related points were deductible under the former rules, the IRS now permits all points to be deducted provided they meet certain criteria such as relating to the purchase of a principal residence that serves as security. Moreover, buyers can deduct points regardless of whether the lender's check is net or gross.

Mortgages

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Current developments

Article Abstract:

Real estate tax developments under the Small Business Job Protection Act of 1996, which changes the rules fpr landlord-provided leasehold improvements, are summarized.

United States, Real property tax, Real property taxes

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