Understanding Current Limitations on the Generation, Deductibility and Use of Real Estate Losses

Agenda

Overview and Nomenclature

Tax and Accounting Fundamentals Relevant to Understanding the Program Discussion

• Expense Versus Expenditure Versus Loss
• Dealers Versus Investors
• Types of Real Estate Losses

Principle Internal Revenue Code Operating Loss Provisions Relevant to Real Estate

• Bonus Depreciation Under TCJA and CARES Act
• IRC §461(l) Excess Business Loss Under TCJA and CARES Act - Mechanics Interaction With NOLs and Schedule D
• IRC §163(j) Business Interest Limitation Under TCJA and CARES Act - Mechanics
• IRC §465 at Risk Limitations Interaction With Other Loss Provisions
• Passive Loss Rules Interaction With Other Loss Sections
• Net Operating Losses Under TCJA and CARES Act - Mechanics Carrybacks Under TCJA and Claim of Right Beware of IRC §6676

Principle Internal Revenue Code Capital Loss Provisions Relevant to Real Estate

• Discharge of Indebtedness
• Losses From Sales of Assets Under §1231 and §1250
• Discharge of Liabilities
• Crane Revisited

Credits

Faculty

Kevin Carmichael, M.S., J.D., LL.M., CPA

Quarles & Brady LLP

• Tax partner with the Naples office of Wood, Buckel and Carmichael, PLLC
• Certified Public Accountant and a member of the Florida Institute of Certified Public Accountants
• Practice focuses primarily on matters concerning business entity law and taxation, federal and state taxation, international tax and tax controversy, not-for-profit entities and taxation, estate planning, and business succession planning
• Admitted to practice before the U.S. District Court for the Middle and Southern Districts of Florida, the U.S. Claims Court, and the U.S. Tax Court
• Taught business law and cost accounting as an adjunct professor at Florida Gulf Coast University for 6 years
• Teaching income, partnership, corporation, and not-for-profit tax law at Ave Maria Law School
• Can be contacted at 239-552-4100 or [email protected]

Dana M. Fragakis, J.D., LL.M.

Wood, Buckel and Carmichael, PLLC

• Attorney with the Naples office of Wood, Buckel and Carmichael, PLLC
• Admitted to practice law in Florida, New York, Colorado and the District of Columbia, as well as before the U.S. Tax Court
• Practice focuses in legal matters affecting families, including estate planning, family wealth planning, business succession planning, income taxation, real estate, and probate and trust administration
• Served on the Board of Directors of the Center for Family Services and currently serves on the Board of Trustees of the West Palm Beach Police Pension Fund which administers a $400,000,000 pension fund
• Can be contacted at 239-552-4100 or [email protected]