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Question:
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Category: Tax and Taxation Law
Location: NJ
Subject: Real Estate Professional
Does the practice of Architecture qualify under IRS regulations as a
real estate professional?
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Reply:
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Category: Tax and Taxation Law
Location: NJ
Subject: Re: Real Estate Professional
No. Architects are licensed professionals. Even though they deal with
real estate, it does not make them a "Real Estate" professional for tax
purposes. If the architect were also to engage in developing and
construction of real estate, then the architect would be a treated as a
real estate professional for tax purposes.
I hope this helps!
Ron Cappuccio
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Name: Lyle
Subject: Letter of Intent for a land development
Question: I was hoping you might have some advice, and maybe a sample letter of
intent, for a land developer who intends to enter into a joint venture with a
land owner, to sub-divide the land into residential lots.
The land owner would be supplying the land, and the all of the design, studies
and approvals required by the local authorities, and the developer would then
take the project through title registration, and sale of the lots, with the
profit being share 50/50.
Thanks for any help you can give.
Answer:
Lyle, there is no such thing as standard form. The terms of a joint
venture are actually forming a partnership-like arrangement. You definitely need
legal advice and representation.
First, you should consider establishing a separate Limited Liability Company for
the joint venture. This will provide a layer of legal protection yet will still
be a pass-through entity.
Secondly, the Operating Agreement and Buy-Sell Agreement in the LLC can outline
the rights and responsibilities of each party.
Third, you need to have your attorney check with the state authorities
concerning real estate sales. Typically, the developer would need to be a
licensed real estate broker.
Lyle, you need a good tax and business lawyer to establish the business entities
and design the best way for you to proceed.
I hope this helps!
Ron Cappuccio
Call me
at (856)
665-2121 today!
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