Frequently Asked Questions
What are Passive loss deductions?
Who is eligible to participate?
Does Housing & Tax Consultants, LLC have a tax ruling from the IRS?
The tax strategies marketed by HTC are in compliance with the Tax Code; therefore, no rulings are necessary. However, the IRS has audited and issued revenue rulings regarding the major parts of our strategies in 1975 and 1981. No changes have been made to them since then.
HTC has tax opinions from leading tax attorneys stating our compliance and the viability of our strategies utilizing well-established areas of the tax Code, although some of them may be unfamiliar to your tax advisors. To assist your advisors in their due diligence, we will provide them with the relevant tax law and our research to properly review our proposed strategy(s).
Can I still use my current accountant and/or attorney?
What is a Limited Disbursement Project?
What is a Negative Capital Account?
For example: If your initial capital account was $50,000 and you received a K-1 showing a loss of $56,000, then your capital account at the end of the year would be -$6,000. Each year you receive a K-1 showing a loss, the negative capital account will get larger. Most of these losses are created through depreciation deductions. The faster you are able to depreciate a property, the larger the negative capital account will grow.