INDUSTRIES

Real Estate

The tax laws and regulations for the real estate industry are constantly changing. Our practice is unique in its broad resources and extensive understanding of real estate transactions. In an industry where errors can easily run to the millions of dollars, you need a firm you can trust not only for accuracy, but an ability to understand where your business is going.

Real estate clients have very specific concerns that need to be addressed. When building or developing a property, the entity formation process will have lasting tax implications. This is also true when selling properties, updating or repair work or literally any other type of change. It’s important to be aware of all tax effects, since there is usually more than one way to structure or manage real estate deductions, investment or transactions.

Even one-off partnerships that own single buildings have important questions and often request our guidance regarding interest limitations, tax rewards or consequences. For large transactions, clients don’t always know the tracking or what happens with the tax. Managing these sizable transactions really matter to the owners because it revolves around a big tax bill.

SDK CPA

The breadth of experience possessed by SDK CPAs in accounting and consultation allows us to offer valuable insight to our real estate clients who need help with multiple services. We enjoy informing them of the associated numbers, the way their situation currently looks and then giving them options and providing alternatives that they could do or not do. This assures that our clients are making informed decisions. We ensure that they leave knowing they have all the cards on the table.

We also recognize that sometimes we have partners who don’t all want to do the same thing. Some want to sell, take the cash and pay the tax, and others don’t want to do that. Maybe they want to do a 1031 exchange, to just roll the money into another property and defer the tax, which means they don’t have the cash in hand because it’s now in a new building. Do they all get stuck paying the tax or they’re all stuck deferring? How do clients get out of it so that some would defer and some would pay the tax? This is one of many situations we are presented with. We find solutions that approach giving everyone a satisfactory outcome.

Featured Services

We offer customized accounting packages with a variety of services to our real estate clients, including:

  • Structuring real estate transactions
  • Expense vs capitalization analysis
  • Assistance with Section 199A tax deductions
  • Minimizing taxes related to sales
  • Assistance with 1031 exchanges
  • Compliance-related tax work
  • Gain/Loss analysis and planning
  • Assistance with IRS Exams
  • Assistance with Basis calculation and tracking
  • 754 elections
  • 163(J) interest expense limitation analysis

Our Team

Memberships

Minneapolis Regional Chamber of Commerce
I-94 West Chamber of Commerce

Whether it’s an 1800-acre property in California or a local investor in the Twin Cities market, SDK CPAs provides the resources that match the project. We handle mergers with venture partners and can perform assurance, income tax, payroll tax and other tax returns for all parties, as well as estate planning to protect your investments for the future. Contact us today to schedule a real estate accounting consultation.

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