2023 Tax planning for real estate, part 1

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.