Real Estate

Supporting Arizona Real Estate

Accounting and Business Consulting

The real estate industry is fast paced and constantly undergoing change. The best companies know a good opportunity when they see it, which includes purchasing real estate and/or capitalizing on development.

Maximizing operating income and asset values are ongoing concerns for real estate businesses. We are well-informed about the Arizona market and experienced in tax and assurance issues. Our goal is to understand our clients’ business operations to assist in developing business and tax strategies, identify opportunities, and focus on minimizing tax and maximizing profits.

Whether starting a new business or owning an established real estate company, it is never too early to consider taxes. With planning, there are many ways to  minimize taxes.

Some examples include:

Green planning – The government offers ways to help the environment. Commercial real estate investors may be able to deduct energy-efficient improvements of lighting, heating, and HVAC systems.

Depreciation – Buildings are generally depreciated over 39 tax years. Other components of the building and exterior can be depreciated over a much shorter life. A cost segregation study can identify opportunities to maximize depreciation deductions.

The Tax Cuts and Jobs Act (TCJA) that became part of the Internal Revenue Code has provisions that impact real estate. Many of those provisions are being analyzed by the IRS and need interpretation and adjustments. Leverage in real estate deals is drastically changing. The new law limits interest paid or accrued to 30% of adjusted taxable income. TCJA provides a deduction up to 20% if the qualified business income is generated from business activity in partnerships, S corporations, and sole proprietorships.

Our experienced and client-oriented team can help with:
  • Partnership, LLC, and S corporation planning
  • Business entity selection
  • 1031 Like/Kind Exchanges
  • Transactional planning (buy/sell)
  • Landlord cost allocations
  • Tax returns and K-1s for investors
  • Passive activity rules
  • Section 199A - 20% qualified business income planning
  • Assurance - financial statement audits and reviews
  • Common area audits for owners, operators, and lessees
  • Worker classifications
  • State and local taxes
  • Cash forecasting
  • Individual tax returns

Services Devoted to Real Estate

Partners and managers are actively engaged with clients in delivering appropriate service. Client teams are comprised of accountants, certified public accountants (CPAs), certified QuickBooks ProAdvisors, and accounting specialists with extensive experience in real estate.

Need Guidance and Help?
If you need advice, give us a call and we will be happy to discuss your situation.