Fall 2016 issue of Horizons

REAL ESTATE

However, this new guidance clarifies that 50(d) income does not give rise to an increase in an investor’s outside basis in a taxable entity, and it concludes that the 50(d) income is indeed a partner item versus a partnership item whereby the “ultimate credit claimant” reports it separately on its tax return.

The new regulations also give further guidance on the tax treatment of 50(d) income upon disposal of a partnership interest post recapture period by allowing the ultimate credit claimant the option to either accelerate or not accelerate its share of the remaining 50(d) income. The election to accelerate is made on the investor’s tax return and is irrevocable once filed. The temporary regulations indicate that properties placed in service on or after September 19, 2016 will be subject to these new guidelines. The IRS is accepting comments, concerns and questions arising from these proposed regulations. Some of these comments may result in changes to the guidelines as currently released.

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RubinBrown’s Real Estate Services Group RubinBrown has developed a strong reputation nationally as a leader in accounting and advisory services. Today, we provide specialized services to more than 2,000 real estate entities.

Bryan Keller, CPA, CGMA — St. Louis Partner-In-Charge Real Estate Services Group 314.290.3341 bryan.keller@rubinbrown.com

Jeff Cunningham, CPA — Denver Partner Real Estate Services Group 303.952.1257 jeffrey.cunningham@rubinbrown.com

David Herdlick, CPA — St. Louis Partner & Vice Chair Real Estate Services Group 314.290.3383 david.herdlick@rubinbrown.com

Jonathan Davis, CPA — St. Louis Accountant Real Estate Services Group 314.290.3419 jonathan.davis@rubinbrown.com

Amy Broadwater, CPA — Nashville Partner Real Estate Services Group 615.253.5200 amy.broadwater@rubinbrown.com

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