Tax issues in major real estate transactions – property development, long-term ownership, build-and-sell, like-kind exchanges – often drive the structures of these deals. If not properly considered, tax issues can also have a major adverse impact on the underlying economics of a deal.
The structure of a transaction can impact the timing and amount of gain, the treatment of losses (often very valuable to participants), and even the tax rate. At every stage of a transaction, tax plays an important role.
This program provides a practical guide to major tax planning issues in real estate deals, including choice of entity, capital gains and distribution planning, and advanced like-kind exchange issues.
Part 1 topics include:
- Choice of entity considerations – contributions, distributions, and eventual sales
- Acquiring property in a form to minimize taxes later
- Understanding allocation and distribution provisions – layered allocations, target/forced allocations, built-in-gain (or loss) allocations
- Understanding and drafting for continuing ownership, including capital shifts and other shifts in ownership
- Deductions arising from non-recourse debt and minimum gain chargebacks