- Learn about the challenges and discrepancies related to tax updates and changes.
- Help clients apply property tax strategies unique to individual states.
- Establish an understanding of the technical application through a review of practical examples.
- Understand the impact of tax reform and the strategies available to utilize the new applications.
- Learn the best ways to collaborate with other professionals and how to incorporate the Team Approach into your daily work routine today.
Impact of economy, interest rates, taxes, supply chain on U.S. real estate and construction. Real estate is top of mind for many of your peers and your clients. As the economy shifts, it’s never been more important to understand the array of complex tax provisions related to real estate and construction and how those provisions impact each other. You must also understand the unusual deadlines related to those provisions and the elections you advise your clients to take about those provisions. The ultimate benefit you provide is often determined by the timing and layering of these intricate provisions.
Tax-centric management relates to an enhanced awareness of planned strategies related to
improvements, upgrades, and re-positioning of real estate assets. Here’s how to use an integrated team
approach related to accelerated depreciation, Partial Asset Disposition, and expense treatment for
certain assets to maximize benefits for your organization or clients. The Tangible Property Regulations
have provided taxpayers with numerous opportunities of offer value and implement annual programs
Christian, an industry expert, will deconstruct the pros and cons of 1031s and Opportunity
Zones in the current tax and real estate climate -- and when to apply each method for maximum tax
Thanks to soaring real estate prices, now is an excellent time to consider §1031 exchanges, as a tax
deferral strategy. However, there are important timing and tax considerations to weigh.
While the 10% basis step up provision expired on 12/31/21, the federal Opportunity Zone program
remains one of the most powerful gain deferral strategies for holders of all kinds of appreciated assets –
not just real estate. Thanks to a longer timeframe to identify a place to reinvest their gains, the OZ
program remains a valuable lifeline for “blown” 1031 exchanges – you will learn why. Christian will also
discuss how cost segregation can enhance the annual and overall IRR on OZ investments and how the
total elimination of depreciation recapture after a ten-year holding period turns the depreciation
expense into a permanent rather than a temporary tax savings.
When does it makes sense to reset the depreciable amount of investment property to a higher
value that would provide a bigger tax benefit – and when it does not? The election of Section 163(j) can
be a beneficial choice for real estate businesses that have a significant amount of interest expense and
qualify to make the election, as it will allow taxpayers potentially to deduct more expenses than they
would be able to deduct otherwise. Will also discuss biggest mistakes and misconceptions concerning
role of Form 3115 (change in accounting method) when it comes to using cost segregation and other tax
provisions for lookback to prior years.
: Experts will discuss tax incentives related to energy efficient commercial and residential
buildings. EPAct 179D is a permanent provision that can benefit owners of newly constructed buildings
or buildings with major renovations. For government owned buildings, the benefit can be allocated to
the primary designer. For energy efficient residential properties, the developer can qualify for
significant tax credits in the year the unit is first leased or if the home is sold. Pressure to lower
operating costs and reduce our environmental footprint leaves us confused about how to do either.
Often an ASHRAE audit can provide the data to know where to focus energy dollars to impact the
bottom line. With interest rates rising, HUD financing offers special rate reductions for properties
certified with a Green MIP study. Initial design can influence how we maximize these incentives and how we claim them.
Experts that structure and design these solutions for their clients, will give us firsthand
examples of how to incorporate various elections and best entity structures to maximize benefits., An
economic unit election is one of the most important decisions real estate investors and their advisors
will make in the first year of a real estate asset. Learn what to do if the election is missed and when not
to make it. Also understand the pros and cons of qualifying as a real estate professional for federal
income tax purposes.
The historic and low-income housing credits are critical incentives for real estate development projects.
Learn how these incentives are used in projects and how they can close funding gaps in a project’s
capital stack. See what a typical organizational structure looks like and how long investors must be
involved in the projects.
Learn from an expert with a focus on economic incentives and how these incentives can
impact other tax provisions or property tax reporting – using detailed cost segregation analysis to
support those decisions. Special emphasis on state specific property tax issues, incentives and
misconceptions and the optimal way to challenge municipal assessments.
This presentation will cover the basic concepts of the Research & Development Tax Credit and
how those in the architectural, engineering, or construction services industry can qualify.
Understand common misconceptions regarding R&D Tax Credits. We will cover R&D new rules for 2022.
Presenters will also discuss various online software tools available for start-up or smaller companies.
: Using the concept of a team approach, you will learn the timing and layering of various
provisions discussed in this conference.
Expert panel reconvenes to discuss your state-specific tax issues (and opportunities) related to
real estate and construction.
The Virginia Society of CPAs (VSCPA) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org.