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:
“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:
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