Check-the-Box Regulations Allow for Selection of an Entity

  • July 22, 1998
  • • Written by: Mark Lee Levine

Summer 1998, Vol 23, No 2

Abstract: How one holds real estate-that is, in an entity or in an individual name-has enormous tax, legal, and practical implications. If a counselor is to be effective in working on real estate issues for a client, he/she must be familiar with the Federal tax rules on what determines how the tax laws treat entities holding realty. Here, the author summarizes these Federal tax rules and important changes in this area. If you own or advise owners of real estate, you must be familiar with the basic rules of Check-the-Box Regulations. Since the tax impact is enormous, it is critical to any owner of real estate to know if and how much tax the entity must pay.