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Tax Issues in Real Estate Partnerships: Dealer vs. Investor Status, 163(j) Interest Limitations, Tax Credits under the IRA, 199A

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Wednesday, August 2, 2023

Recorded event now available

or call 1-800-926-7926

This course will provide tax advisers with a detailed and practical guide to navigating certain planning complexities and opportunities for real estate partnerships. Our panel of real estate experts will analyze the factors that determine dealer status along with recent cases to enable real estate owners and their advisers to report investor or dealer status and properly mitigate IRS challenges. The panel will also cover other important topical real estate partnership tax issues including carried interest, 163(j), and the availability of tax credits under the Inflation Reduction Act.


From the formation of the entity, ownership and holding purpose affect how the income, deductions, gain, and loss are characterized, allocated, and reported among various partners. Real estate partnerships carry a myriad of tax considerations, which tax professionals must identify to serve their LLP and LLC clients.

Recent legislation provided new energy incentive tax credits that provide benefits for real estate partnerships. This panel will kick off with an overview of the new tax credits and how they can be utilized by real estate partnerships.

Among the many planning and reporting challenges is determining whether property is characterized as dealer property. Property that is treated as dealer property has significant tax implications because income recognized on the disposition of property that is not “dealer property” can qualify for favorable long-term capital gains rates, whereas gain from the sale of dealer property is taxed as ordinary income.

Other challenges for real estate partnerships include determining the impact of the carried interest regulations on the real estate partnership, whether the partnership qualifies for the 199A passthrough deduction, and whether the partnership can elect out of 163(j), the interest expense limitation.

Listen as our experienced panel provides a detailed and advanced look at the complexities of real estate partnership tax considerations and discusses some of the planning techniques available to avoid negative tax consequences that may arise in real estate partnerships.



  1. The Inflation Reduction Act and energy incentive tax credits
  2. Tax criteria and consequences of dealer property
  3. Carried interest
  4. Section 199A – passthrough deduction for qualified business income
  5. Section 163(j)--interest deduction limitations


The panel will review these and other important issues:

  • Tax credits under the Inflation Reduction Act
  • When to advise partnerships holding real estate assets to avoid dealer classification
  • Planning structures that help reduce the amount of gain taxed at ordinary income
  • Utilizing the 199A passthrough deduction
  • Electing out of the 163(j) interest limitation


Arndt, Kimberly
Kimberly Arndt

Tax Counsel
Senate Finance Committee

Ms. Arndt has worked in the real estate industry, advising clients, including public and private REITs, on complex U.S....  |  Read More

Feuerstein, Adam S.
Adam Feuerstein

Principal, National Real Estate Tax Technical Leader

Mr. Feuerstein is the National Real Estate Tax Technical Leader at PricewaterhouseCoopers, LLP and, in that role, he...  |  Read More

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