How2 qualify pshp box 13W debt fin distr int exp as home acq

Technical topics regarding tax preparation.
#1
Posts:
886
Joined:
26-Feb-2016 10:14pm
Location:
Oakland CA
LLC member received a large distribution from an LLC in 2017 from a non-recourse financing. Plenty of basis and income so no limits from those. The LLC properly allocated the int it paid attributable to that distribution on line 13W of the 2017 K-1. Not feasible for the LLC member to have the LLC record a note against the LLC's member's newly acquired residence.

Is there any exception in the regs that covers a situation like this so that the interest traceable to the purchase of the residence is deductible?
 

#2
Posts:
794
Joined:
21-Apr-2014 11:29am
Location:
California
See Reg § 1.163-10T-(o). Qualified residence interest (temporary).

This requirement has not changed that I am aware of.
 


Return to Taxation



Who is online

Users browsing this forum: Google [Bot], Google Adsense [Bot] and 96 guests