Brandon Hall is a CPA who runs a firm called The Real Estate CPA, and in today’s episode, he talks to listeners about taxes. His first recommendation is for syndicators to understand what they are trying to accomplish with their deals and whether they are aiming to tax optimize or simply break even. He goes on the explain the importance of knowing the 2013 tangible property regulations and how it pertains to syndication, and then gets into why electing out of the business interest limitations is advisable in most instances. Brandon walks listeners through the nitty-gritty of the K-1 form, where the most pertinent details are located, and why it is of utmost necessity to keep track of your capital balance as a limited partner.
Key Points From This Episode:
- Learn about Brandon’s CPA firm, its clientele, and the number of employees.
- The three biggest tax considerations that asset managers should pay attention to.
- Why it is important to know the 2013 tangible property regulations.
- Establishing whether you are trying to maximize losses or simply break even.
- Advice for when syndicators should seek help with their taxes.
- An explanation of what business interest limitations are and how they impact syndicators.
- A breakdown of what a K1 looks like and the details that are relevant to you.
- The importance of tracking your capital account balance as a limited partner.
“If I put 50,000 bucks into a partnership, then my capital account is 50,000 bucks. If the partnership liquidates and it has a gain, first they have to pay me back my 50,000 before it's allowed to distribute gain to anybody else.” — @BHallCPA [0:10:02]
“The biggest thing that you need to make sure that you very clearly track is that capital count on an ongoing basis.” — @BHallCPA [0:12:08]
Links Mentioned in Today’s Episode: