Limited liability companies as investment vehicles

Article Abstract:

A limited liability company (LLC) is an investment vehicle that is legal in seven states and that offers the advantages of corporations, S corporations and limited partnerships. LLCs have limited liability and the tax advantages that come from flow-through of profits and losses. However, LLCs are free of the restrictions on S corporations and offer more participation in management than limited partnerships. These advantages will increase the role of LLCs in real estate investment.

Real estate agents and managers, Management, Real estate investment, Real estate investments, Limited liability companies

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The tax treatment of clean-up costs

Article Abstract:

The Environmental Protection Agency has identified 30,000 contaminated sites with a projected cleanup cost of $750 billion to $1 trillion. Fines and penalties for environmental cleanup are not tax deductible under the Internal Revenue Code and Treasury Regulations. The Code declares costs deductible for incidental repairs and capital expenditures that do not enhance the value of the property.

Tax Law, Liability for environmental damages, United States. Internal Revenue Service

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Tax rules punish victims of mortgage foreclosures

Article Abstract:

US tax rules can cause significant problems for some homeowners subjected to mortgage foreclosures. At risk are homeowners who are personally liable for mortgage debts and whose mortgage obligations exceed the fair-market value of their homes. Under "discharge of indebtedness" rules, gains resulting from foreclosures can be taxed, but losses cannot be claimed as personal losses.

United States, Personal Taxes-Capital Gains, Taxation, Economic aspects, Income tax, Personal income tax, Homeowners, Foreclosure, Capital gains tax

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