2021 Tax Planning for Real Estate, Part 2

Original program date 10/13/2021

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 will provide you with 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. 

Day 1

•    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

Day 2

•    Advanced Like-Kind techniques for deferring gain on the disposition of property
•    Techniques for using partnerships – mixing bowl partnerships, freeze partnerships, leveraged acquisition partnerships 
•    Installment sales and cross-purchase/redemption agreements 
•    Capital gain tax planning and the 3.8% tax on net investment income 

Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for GAL Certification, ethics, elimination of bias or Kansas credit.