Looking for a real estate tax/legal professional in the Twin Cities
November 14, 2011 4:10 PM   Subscribe

I need recommendations for an accountant, tax lawyer, or real estate lawyer in the Twin Cities.

We are considering doing a rentback agreement with the sellers on a house we're buying, but they are asking for nearly several months of rentback period while they build a house and I am concerned about the tax liability we might face being landlords for going on half a year. I have seen this question, but it wasn't all that helpful to the original poster and I need someone to look at my specific situation. Thanks!
posted by peanut_mcgillicuty to Law & Government (3 answers total)
Best answer: You definitely want a tax lawyer and an accountant, but can probably skip the real estate lawyer. The latter tend to focus on real estate transfers, which isn't what you're doing here.

I don't know about accountants, but Martindale is a great place to look for lawyers. You can then use your tax lawyer--who may actually be an accountant--to get a recommendation for an accountant.
posted by valkyryn at 5:00 PM on November 14, 2011

Well, if you are looking for a real estate attorney then Felhaber, Fenlon, Larson and Vogt maybe an option. Disclaimer; I know one of the partners.
posted by jadepearl at 5:59 PM on November 14, 2011

Response by poster: Thanks, valkyryn - I found a fantastic lawyer through Martindale who answered my immediate questions and will be my go-to person for the rest of this transaction.

For future searchers, I also spoke with an accountant, and since the previous question didn't really get resolved, I'll put this update here: rentback income must be reported on a Schedule E, and you can deduct all the expenses associated with the property on that as well. So if you're just charging PITI, you don't owe taxes, and if you charge more, it just gets taxed at your normal tax rate. Other things that might affect your situation include homestead credits, local zoning regulations, etc. and none of this is advice and your situation is dependent on your unique circumstances and so on, but the short answer to the original question is yes, you must report income received when doing a rentback.
posted by peanut_mcgillicuty at 11:03 AM on November 15, 2011

« Older Where can I get a fabulous and cheap gown for a...   |   #NotThankful for your seemingly endless bliss and... Newer »
This thread is closed to new comments.