Good news for investors in partnerships that go bad

Article Abstract:

Investors in real estate limited partnerships may now be allowed to deduct their investment losses from their tax liabilities within the year they gave up their interest in the investment. The US Court of Appeals for the 5th Circuit issued this ruling in the case of John C. Echols and Deanna O. Echols versus Commissioner of Internal Revenue. The significance of the ruling is that investors can now determine when to declare their losses from worthless partnership investments. Guidelines on how investors can decide on whether or not to give up their investments and procedures for abandonment are provided.

Analysis, Real estate investment, Real estate investments, Tax deductions, Loss deductions

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The second-generation of roll-ups

Article Abstract:

Legislative initiatives, improved self-regulation and increased investor awareness have caused changes in limited partnership roll-ups. While roll-ups between 1987 and 1991 were generally driven by power and greed, the roll-ups of 1992 are seen as fairer to limited partners. First-generation roll-ups were also largely partnership-to-partnership conversions wherein publicly registered partnerships were transformed into master limited partnerships. Second-generation roll-ups, on the other hand, are partnership-to-real estate investment trust conversions.

Real estate investment trusts, Evaluation, Investments, Real estate industry

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New law seeks to end abusive roll-ups

Article Abstract:

Legislation in California provides protection from roll-ups for investors, who are still unprotected outside this state. The Thompson Killea Limited Partnership Act was effective in California from the start of 1993, but, though it gives protection from future occurrences, some 500,000 investors have already been hit by over twelve big roll-ups. The trend for roll-ups took off in the late 1980s, and there is still hesitancy over tackling the issue at federal level.

DEPOSITORY INSTITUTIONS, Nonresidential building operators, Methods, Interpretation and construction, Tax law, Syndicates (Finance)

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