The real estate industry is a dynamic environment requiring the application of highly technical tax laws. The industry is transactional in nature and the capital sourcing is largely specific to each transaction. The result is frequent entity formation and alternative forms of project financing to generate the lowest cost of capital and highest equity returns to the operator. Real estate profits are founded upon development expertise or the ability to generate investment return spreads from existing real estate acquisitions and management strategies. The accounting and tax professionals must be equipped with a strong knowledge of partnership and S Corporation taxation as these are the most efficient and preferred entity types for real estate ownership, tax planning and accessing capital sources. The partnership structure for asset ownership offers a flexible vehicle to effectuate creative tax planning maneuvers that can yield significant benefits if planned carefully. The flexibility of the partnership structure requires a trained eye to recognize the opportunities available to a proposed transaction.

Tax advantages in a real estate transaction can be negotiable between the members of a partnership and require a team member that understands the critical elements. A trained real estate professional will see a perspective for structuring tax benefits into a transaction without impacting the economic objectives of the parties to the transaction and communicate the opportunity in layman’s terminology so as to succeed in its implementation. The value created from such efforts is recognized by the real estate entrepreneur in the form of enhanced after tax cash flow and preservation of invested capital. Tax deferment is a recognized capital source to grow the net worth of our clientele.