Urgent Tax Updates: FinCEN BOI Filing, Real Estate Losses, and More—What You Need to Know Now! 

Court Battles Rage: File Your FinCEN BOI Report Now or Wait?

Recent legal challenges have created uncertainty surrounding the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting requirements. If you own a small corporation or LLC, understanding your filing obligations is crucial.

Background on the CTA

The CTA requires businesses to file a BOI report with FinCEN, listing individuals who own or control the entity. These reports are used strictly for law enforcement and are not publicly available. Originally, businesses formed before 2024 were required to file by January 1, 2025, while new entities in 2024 had a 90-day deadline.

Current Legal Status

As of January 1, 2025, a nationwide injunction has paused all BOI filing requirements, meaning:

Should You File Voluntarily?

While filing is not required at the moment, voluntary filing can help businesses avoid last-minute rushes if the injunction is lifted unexpectedly. Staying prepared with required information is advised.


Can Real Estate Professional Status Free Up Old Passive Losses?

Many real estate investors seek professional status to unlock tax benefits. But can this status allow immediate use of prior suspended passive losses? Unfortunately, no.

Understanding Passive Loss Rules

The tax code limits passive loss deductions to passive income. Suspended losses carry forward and can be used only when:

Real Estate Professional Requirements

To qualify, you must:

Additionally, you must materially participate in rental activities to deduct losses against non-passive income.

Takeaway

While real estate professional status helps with current-year losses, it does not automatically release prior-year suspended losses.


Missed an Estimated Tax Payment—Now What?

Missing an estimated tax payment can lead to IRS penalties. Here’s what you need to know:

Key Deadlines

For tax year 2024:

Avoiding Penalties


Tax-Free Home Sale: When and Why You Need to Report to the IRS

Selling your home? You can exclude up to $250,000 ($500,000 if married filing jointly) of gain from taxes, provided you owned and lived in the home for two out of the last five years.

Do You Need to Report the Sale?

How to Report

Use Form 8949 and enter your gain (or zero gain) on Schedule D.


These tax updates could impact your financial decisions. Stay informed and take action to maximize your benefits!