REAL ESTATE PRACTICE

A TRUELY COMPREHENSIVE OFFERING

The real estate industry presents unique challenges and opportunities that require specialized knowledge and expertise. We understand the intricate financial, operational, and reporting matters that accompany the real estate construction, development, holding and leasing, and transacting businesses. Our level of familiarity allows us to offer comprehensive solutions tailored to the needs of property owners, developers, investors, and real estate professionals across all property types—residential, multi-family, commercial, and industrial—ensuring that we can provide the highest level of service no matter your specific needs.

The challenging part of advising and reporting on real estate transactions typically arises from improper or unavailable financial statements for decision-making and reporting. Much of the tax code in the United States has special provisions, exceptions, or is otherwise unique to real estate businesses and real estate professionals — traditional operating business financial statements will not work, especially for multi-project and multi-year activities.

Computations for improvement value, land value, revenue recognition, expense allocations, depreciation and amortization, differences between federal and state tax law, tax credits and incentives, partner basis tracking, NIIT planning, cash flow management, tenant-landlord allowances, sale-leaseback accounting, JV or Partnership agreement tracking, among a host of other tax-specific accounting needs make the bookkeeping process a highly technical and specialized area for accountants and CPAs.

Bookkeeping for real estate activities is no simple task. Most ledger management tools are not designed with real estate transactions in mind, but with proper experience, technology, and bookkeeping techniques, we can streamline the bookkeeping and financial reporting process for tax reporting, management decision-making, reporting to creditors, and reporting to regulators.

We offer a range of specialized services to address the unique challenges faced by real estate businesses. Some of the common areas are detailed below.

• Like-Kind Exchanges (IRC § 1031 Exchanges): We guide you through the process of deferring capital gains taxes by reinvesting in similar properties, helping you to preserve your investment capital and defer capital gains tax. Section 1031 exchanges are complex and require careful planning, adherence to strict rules that, if not applied carefully, can disqualify an exchange and have devastating tax consequences for leveraged or illiquid real estate holdings.
• Depreciation, Depreciation Methods, and Cost Segregation: Our team helps you maximize depreciation deductions by properly classifying and depreciating components of your real estate assets, methodically analyzing and applying activity grouping rules and elections, among other application of technical tax law and reporting.
• Wholistic Partnership Planning: Tiered entity, Partnership-level, and Partner-level transaction advisory, structuring, and planning. We have the answers to your most complex questions, either internally or externally, through our network of advisors and tax practitioners.
• Tax Credits and Incentives: We identify and secure real estate-specific tax credits and incentives that can significantly reduce your tax burden and enhance after-tax profitability.
• Net Investment Income Tax Planning: We provide strategies to minimize your exposure to the net investment income tax, maximizing your after-tax returns.
• Leasing Issues, Including Pass-Through Costs: We help you navigate the complexities of lease agreements, including the treatment of pass-through costs, to ensure accurate accounting and tax reporting.
• Assurance for Regulatory and Lender/Investor Requirements: We provide assurance services to meet the stringent requirements of regulators, lenders, and investors, ensuring transparency and compliance in your financial reporting.

DISCOVER WHAT'S POSSIBLE.