Real Estate Tax

Corporations, LLCs and personal ownership of real property involved in real estate construction, investments, development or rental. 

We handle special real estate cases in short sales, foreclosures, abandonment, and bankruptcy. Did you receive a Form 1099-C, Cancellation of Debt Income or a Form 1099-A, Acquisition or Abandonment of Secured Property?  If so, please contact our office for assistance.

IRS Source:

What is Cancellation of Debt?
If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

We help clients with tax relief of their primary residence under the The Mortgage Forgiveness Debt Relief Act and Debt Cancellation. Taxpayer has until end of year 2012 to exclude up to $2 million of forgiven debt ($1 million if married filing separately).  

We provide consultancy to foreigners that owns and disposes of US realty, as well as foreigners that own shares in a US corporation or LLC, that they are in tax compliance with the Foreign Investment in Real Property Tax Act (FIRPTA) rules.

Disposition of US Realty is subject to Withholding requirements.  See the IRS link below:

FIRPTA Withholding

There are also specific rules for foreign nationals involve in the rental real estate business through a Corporation, LLC or as an individual.  See the link below for details: 

Foreign Persons Receiving Rental Income From U.S. Real Property