A substantial portion of our practice is devoted to real estate tax planning involving partnerships, including limited liability companies, that operate in a variety of industries. Many clients are full-time real estate professionals while others are private investors that passively invest their excess cash flow in real estate.
Very few tax advisors fully understand the truly remarkable tax planning options available to partners of partnerships and members of limited liability companies that own real estate. The flexibility of a partnership or limited liability company, combined with the unique tax opportunities afforded to real estate owners, give taxpayers many opportunities to minimize their tax burden.
We are uniquely experienced to counsel taxpayers in making the right choice. Our expertise includes:
- Acquisitions and Dispositions of Partnership and LLC Interests
- Section 1031 Like-Kind Exchanges (including forward, reverse, and exchanges involving tenant-in-common interests)
- Tax Deferred Installment Sales (including sales to related parties)
- Conservation Easements and Charitable Trusts
- Tax-Free Partnership Liquidations and Exit Strategies
- Spin-offs and Partnership Divisions
- Tax Deferral Techniques
- Capital Gains Tax Planning
- Asset Protection Planning for Real Estate
- Depreciation Recapture Minimization Planning
- Planning for and Avoidance of Cancellation of Indebtedness Income
From a tax standpoint, partnership entities (including limited liability companies) are very flexible. However, the partnership tax rules are extremely complex. Our attorneys are experienced in navigating these rules and developing tax-advantaged acquisition and disposition strategies.
We have recently represented:
- Acted as local counsel for syndicated sale of federal historic tax credits for renovated historic office buildings.
- Acted as lead counsel for purchase of state historic tax credits for renovated historic office building.
- Representation of local development company in structuring multiple tax advantaged development strategies for the deferral of over $10 million in tax pursuant to 1031 exchanges and other planning.
- Representation of real estate developer in sale and multi-property section 1031 exchange of net leased properties replaced with partially completed retail developments including construction bridge financing and permanent conduit non-recourse financing combined with purchase of LLC membership interest for optimal tax consequences.