In this episode of the Major League Real Estate Podcast, Nathan Sosa and Matt Hamilton dive into the tax and legal complexities of contributing property to a partnership and why the IRS’s disguised sale rules can turn a seemingly simple transaction into a taxable event.
Nathan and Matt walk through:
- How property contributions work under partnership tax rules
- Why partnerships offer flexibility for moving assets in and out, most of the time
- What qualifies as a disguised sale and why it’s “just a sale with extra steps”
- Real-world examples where investors accidentally trigger taxable events
- The impact of existing debt on contributed property and partner capital accounts
- How built-in gain, basis preservation, and bonus depreciation limits come into play
- Key pitfalls in 721 transactions and when to involve your CPA and attorney early
They also cover why proactive planning and clear deal structuring are critical to avoid IRS scrutiny, unexpected tax bills, and unnecessary headaches.
Request a free discovery meeting: go.therealestatecpa.com/mlre
Subscribe to the REI Daily Newsletter: go.therealestatecpa.com/mlresubscriber
Get the Ultimate Guide for Real Estate Syndications: go.therealestatecpa.com/mlreultimateguide
The Major League Real Estate podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, investing, financial, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests.
