Real Estate

Real Estate Tax

Our firm has extensive knowledge in the Real Estate Sector in developments, constructions, industrial, multi-family, management, funds etc. The Real Estate sector many times provides the most manuerving when it comes to strategic tax planning and compliance.

Leveraging depreciation schedules and accelerating the depreciation schedule with the use of Cost Segregation Studies has been a key tax tool to avoid a tax burden. Tax-free exchanges have allowed clients to roll-over appreciated gains into larger projects while avoiding any tax burden. The use of refinancing to grow a portfolio or to restructure current debt structure to alleviate higher interest is one of many ways investors find themselves needing a strategic partner to help navigate.

Examples of our services below:

  • Accounting systems implementation
  • Acquisitions Analysis
  • Cost segregation analysis
  • Debt allocations & tax planning for debt restructuring and forgiveness
  • Long-term tax planning
  • Opportunity Zone Fund structuring
  • Partnership and LLC operating agreements, tax allocations and economic deal considerations
  • Tax compliance services & Transaction structuring for complex deals
  • Tax deferral strategies & Tax-free exchanges (Ex. 1031 Exchange)

Qualified Opportunity Zones

Taxpayers may defer and permanently reduce capital gains tax due on the disposition of property if the capital gains are reinvested in a Qualified Opportunity Zone through a Qualified Opportunity Fund.

    • Qualified Opportunity Zone (“QOZ”): A population census tract that is low-income and has been nominated by the Governor (or other Chief Executive Officer) and designated by the Secretary of the Treasury as a qualified opportunity zone.
    • Qualified Opportunity Fund (“QOF”): A self-certified entity taxed as a U.S. partnership or U.S. corporation (including a REIT, LLC or S corporation) that holds at least 90% of its assets in Qualified Opportunity Zone Property (“QOZP”).

Our firm helps clients leverage Qualified Opportunity Zones and with the formation/structuring of the Qualified Opportunity Fund (“QOF”) as well as direct investment of the Qualified Opportunity Fund into Qualified Opportunity Zone investments.

Three Types of Benefits for Program Participants:

  1. Deferral of Gain from a Sale or Exchange of Prior Investments.
  2. Reduction of Deferred Gain from the Sale or Exchange of Prior Investments.
  3. Exclusion of Gain from the Sale or Exchange of Investments in QOFs.

Cost Segregation Studies

Accelerating the depreciation schedule with the use of Cost Segregation Studies has been a key tax tool to avoiding a tax burden. By allocating the total cost of a property across all components we are able to utilize shorter asset lives to recompute the accelerated depreciation to date, accelerating deductions, lowering tax liability and increasing cash flow.