Real Estate Tax Center
Are you in the real estate business or do you own rental property or investment property? If so, this information is for you. It is important for you to know your tax responsibilities.
Tax Tips for Real Estate Agents
Recordkeeping Unless you are a professional bookkeeper, you probably don't like to spend valuable business time keeping records. But keeping good records can actually help you save money.
Business Expenses Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit.
Reporting Information Returns Your business may be required to file information returns to report certain types of payments made during the year.
Self-Employment Taxes The self-employment tax is a social security and Medicare tax for individuals who work for themselves.
Estimated Tax Payments Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards.
Understanding Your IRS Notice We realize that receiving a notice from the IRS can be unnerving, but if you follow these simple steps, the process for resolving the discrepancy should be straightforward.
Useful Forms and Publications
Form SS-8 (PDF) Determination of Worker Status for Purposes of Federal
Employment Taxes and Income Tax Withholding
Publication 15-A (PDF) The Employer's Supplemental Tax Guide has detailed guidance including information for specific industries.
Publication 15-B The Employer’s Tax Guide to Fringe Benefits supplements Circular E (Pub. 15), Employer's Tax Guide, and Publication 15-A, Employer's Supplemental Tax Guide. It contains specialized and detailed information on the employment tax treatment of fringe benefits.
Tax Tips for Landlords/Rental Owners/Investors
This section contains information on topics such as tax credits, rental income and expenses, and the sale of property.
Audit Technique Guides - Real Estate The IRS Market Segment Specialization Program (MSSP) publishes various guides for use by IRS employees conducting audits and as information for taxpayers and practitioners.
Selling Your Property When you sell a capital asset, the difference between the amounts you sell it for and your basis, which is usually what you paid for it, is a capital gain or a capital loss.
Form 8582 (PDF) Passive Activity Loss Limitations
General Real Estate Information
Whether you are a landlord, investor, or real estate agent, there is additional information you need to be aware of:
FIRPTA The Foreign Investment in Real Property Tax Act (FIRPTA) requires a FIRPTA withholding tax of 10% of the amount realized on the disposition of all U.S. real property interests by a foreign person. A buyer of U.S. real property interest from a foreign investor is considered the (transferee) and also the withholding agent. The transferee must find out if the transferor is a foreign person. If the transferor is a foreign person and the transferee fails to withhold, the buyer may be held liable for the tax. The seller must report that sale of the real property interests by filing a U.S. Federal Tax Form 1040-NR or Form 1120-F.
Form 8300Workbook on Reporting Cash Payments of over $10,000 The law requires that trades and businesses report cash payments of more than $10,000 to the federal government by filing IRS/FinCEN Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. This workbook helps determine what transactions a business must report and how to report them and also addresses the civil and criminal penalties that might apply for noncompliance with the rules.
Foreclosures/Short Sales
If your home is foreclosed or part of a debt is forgiven, you may have to include some or all of it in your income.
Tax Gap information for real estate industry
General Information for Businesses
Tax Information for all Small Businesses This section provides general small business information useful in all industries and professions. It includes links to small business products, employment taxes, electronic filing and paying, taxpayer burden reduction, abusive tax avoidance transactions, and many other topics.
Small Business Videos These videos are designed to help new and existing small business owners understand and meet their federal tax obligations. Topics include: What you need to know about federal taxes and your new business, how to set up and run your business so paying taxes isn't a hassle, federal unemployment taxes, and much more.
The Small Business Resource Guide CD-ROM
The Small Business Resource Guide (SBRG) CD-ROM is a handy, interactive CD designed to equip small business owners with the skills and knowledge needed to successfully manage a business. The CD covers a wide range of topics, from starting a business to retirement plan options. Accessible on-line 24 hours a day.
Small Business Products Online Ordering
Looking for a tool to help you meet your tax requirements? Choose from our free products, developed especially for the Small Business/Self-Employed person, and obtain updated information on existing products. Order today online or by calling (800) 829-3676.
e-News for Small Businesses is a free electronic mail service designed to provide tax information for small business owners and self-employed individuals. It is distributed every other Wednesday.
Remember that for the genuine IRS Web site be sure to use .gov. Don't be confused by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is www.irs.gov.