Real Estate & Development
Build a solid foundation.
Real estate has been a favored investment vehicle for as long as people have lived in organized societies. For those with the right mindset – and access to the necessary capital – it can provide extremely rewarding business opportunities.
But those opportunities are accompanied by almost unparalleled complexity. Tax law offers rewards to those who know how to leverage the rules and missed chances – and even losses – for those who don’t. You need incredible drive, ready access to reliable data and a cohesive, proactive team to manage varied and complex revenue streams, juggle multiple systems and oversee simultaneous construction and renovation projects at several sites. You need an accounting firm that understands your vision and priorities and can help you prepare to minimize risks and maximize possibilities.
Key Considerations
Record keeping.
Every business needs quality data – especially financial data – to run smoothly, accurately assess progress and identify potential problems. Capital intensive businesses in real estate and development can particularly benefit from having up-to-the-moment financial records at their fingertips. This is usually a joint effort, with internal finance and bookkeeping teams having day-to-day responsibility with fine-tuning assistance from the business’ accounting firm.
Depreciation.
More than nearly any other type of business, real estate-based enterprises can benefit from carefully tracking and strategically using depreciation. It is essential to have meticulous, thorough records and detailed understanding of how depreciation – and valuation – work in various circumstances. It is also important to understand how recapture might impact a transaction’s value when it’s time to sell a particular property.
Compliance.
Real estate, development and construction-based businesses often face a higher compliance burden than other types of enterprises. Real property is taxed at the local level, and failure to stay on top of this carries significant risks. Pathways to tax credits are deductions are often narrowly-defined, and require that specific actions be taken, sometimes in a specific sequence. And because laws and regulations in this area are constantly changing, it is essential to stay on top of the rules or risk substantial opportunity costs.
Singer & Falk works with dynamic real estate, development and construction firms of many descriptions.
We actively participate in helping our clients in these industries set up the record-keeping systems they need to have access to critical data in usable formats. We help them manage depreciation as part of their broader financial strategies, perform cost segregation studies and oversee lease accounting. We are keenly aware that laws governing real estate investments and transactions offer many possibilities for tax efficiencies if things are done in the legally prescribed manner. We dig into our clients’ business practices to ensure that they are taking advantage of applicable deductions, tax credits and other favorable circumstances. We stay up to date on even the most subtle changes to the law that might impact our clients. Additionally, we help facilitate 1031 exchanges and opportunity zone investments, set up REITs, and produce investor reporting.
Contact us when you’re ready to work with an accounting firm that’s as passionate about building things as you are.
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