Partnerships and S Corporations with Real Estate

• Form 4562 – Depreciation and Amortization (Includes Information on Listed Property)

• Form 4797 – Sales of Business Property

• Form 8825 – Rental Real Estate Income and Expenses of a Partnership or S Corporation

• Forms 8996 & 8997 – Qualified Opportunity Fund (QOF) Reporting

• Form 7205 – Deduction for Energy-Efficient Commercial Buildings

What Is This About?

These forms are used by partnerships and S corporations that own, rent, or sell real estate.

• Form 4562 reports depreciation and amortization of business assets, including real estate improvements and equipment.

• Form 4797 is used for reporting sales or exchanges of business property, including real estate used in a trade or business.

• Form 8825 tracks rental real estate income and expenses for partnerships and S corporations.

• Forms 8996 & 8997 relate to Qualified Opportunity Funds (QOFs), which provide tax incentives for investing in designated Opportunity Zones.

• Form 7205 allows deductions for commercial buildings that meet high energy efficiency standards, promoting sustainability in real estate investments.

Why Is This Important?

• Depreciation deductions (Form 4562) can help reduce taxable income.

• Selling commercial property (Form 4797) may have capital gains tax implications.

• Rental income and expenses (Form 8825) must be accurately reported for tax compliance.

• QOF investments (Forms 8996 & 8997) can defer or reduce capital gains taxes.

• Energy-efficient buildings (Form 7205) can qualify for additional tax deductions.