Can real estate qualify for the family business deduction?

August 18, 2000

Date:  Thu 27 Jul 2000
From:  Anonymous

We own a lot of rental real estate and the IRS has a special deduction for family run businesses. My question is does real estate that is income producing that has been held for 50 years and in which the heir is active qualify for the family business deduction?

Answer

Date:  28 Jul 2000

I think your question relates to the new estate tax deduction relating to a family business.

Real estate that is passively rented does not qualify for the deduction. Real estate used for a family farm or in a trade or business, such as a motel, may qualify.

The tax rules relating to this deduction are very complex. If you want to plan for using the deduction, I recommend you work with a good estate planning attorney.

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.


Home    Newsletter Archive    Introducing Michael Gray, CPA    Articles    Tax FAQ   Need Help?    Other Links


Michael Gray, CPA
2190 Stokes St. Ste. 102
San Jose, CA 95128
(408) 918-3162
FAX: (408) 998-2766
Hours: 8am - 5pm PDT Monday - Friday

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+
Our Blog

Sign up for our free monthly newsletter,
Tax & Business Insight,
for the latest tax news!

subscribe html
unsubscribe text only

We respect your email privacy!