why real estate developer seek tax attorney

How can a real estate developer minimize taxes?

Aug 18, 2015 · The developer will want to maximize the amount of long-term capital gains taxes paid on the development transaction since long-term capital gains tax rates are significantly lower than ordinary income tax rates. The difference in these tax rates can be as high as 24.6%.

What can a tax lawyer do for You?

Mar 09, 2015 · Real estate investment attorneys can provide assistance with debt placement and advisement on return on equity, the strategy of investment, and meeting the goals of your investment depending on the level of involvement you desire. Property tax negotiations The more property you invest in, the more property taxes you’ll be faced with each year.

What does a real estate lawyer do?

Oct 20, 2020 · Tax issues often arise when structuring real estate funds, joint ventures, REITs and transactions, particularly when doing so across borders. Our real estate clients turn to Goodwin’s tax experts to help them overcome the hurdles that these issues present. Our tax expertise is at the core of the firm’s real estate transactional practices with dedicated real estate tax experts …

Can a real estate developer be a real estate investor?

Apr 04, 2019 · They can also point out the potential liabilities and any overall structure protections. Their law license then allows them to complete the legal documents needed to make things happen. One of the biggest advantages of hiring a tax lawyer over a CPA is the protection of your business through attorney-client privilege.

A: A property tax attorney is a lawyer specifically focused in laws that pertain to property tax and tax assessment

Property tax law handles issues surrounding property and real estate taxes at the state and local level, including ad valorem taxation. Real Estate Law covers real estate Assessment, real estate valuation and tax collection. A Property tax attorney is one who is knowledgeable about property tax exemptions.

Is a Property Tax Attorney always needed?

For most property tax cases, an assessment appeal, guided by a property tax appeal professional is the way forward. Your Property Tax Appeal Agent knows a lot about real estate valuation and market data. And your Property Tax agent will have special research tolls and knowledge to get you the lowest possible re-assessment.

What is real estate work?

The real estate work often involves facilitating negotiations among a long list of individuals and entities - for example, developers, banks, and corporations, often located in different countries - and then drafting the contracts and other documents needed to close the deal.

What did Wittenborg do in the 1980s?

In the 1980s, Wittenborg shifted to working on commercial real estate transactions, and then later represented national lenders. "I have no regrets," he says.

What time does O'Brien check his fax machine?

Since most people buy houses on the weekends when they are not at work, a typical work week for O'Brien involves checking his fax machine at 8:00 on Monday and Tuesday mornings, and usually finding two or three contracts there waiting for him. Then he gets to work.

Is the housing market hot in Illinois?

In Illinois, the housing market right now is "very hot," says O'Brien; there is a lot of work out there for real estate attorneys. By the same token, residential real estate law is probably not going to make you rich or work you to death.

Is real estate a good specialty?

One specialty, many ways. Real estate law is a good specialty to combine with others, says Lisa Abrams. It can be part of a family law practice, when it comes to dividing assets and property. It can be part of estate planning, in setting up trusts to distribute property.

Why hire a real estate attorney?

Why Hire a Real Estate Investment Attorney? Investing in real estate is one of the best ways to invest in your financial future. But navigating the various negotiations and purchases required of real estate investment can be overwhelming, especially if you’re new to the process. That’s why hiring a real estate investment attorney is one ...

What can a real estate investment attorney do?

A real estate investment attorney can help you understand tenant rights and the implications of lease arrangements, both current and future, as well as draw up and review leasing terms and strategies. They can also assist in landlord-tenant dispute prevention, ensure fair housing compliance, resolve fair housing complaints, and respond to notices.

What is the best way to maximize your real estate investment?

A real estate investment attorney can help you maximize your profits and minimize your risks. Buying and selling a property at the best possible price is essential to successful real estate investment, and an attorney can help make sure you’ll be able to maximize the return on your investment from the legal perspective.

What is property tax negotiation?

Property tax negotiations. The more property you invest in, the more property taxes you’ll be faced with each year. A real estate investment attorney give you advice on property tax implications and protest services so you don’t end up paying more to the taxing authority than you have to.

Why is it important to hire a real estate management company?

Once you’ve begun to establish yourself as a real estate investor, it’s wise to hire a real estate management company to help handle the many tasks and details that can quickly become overwhelming, especially if you’re working on your own.

Who is Michael Farah?

Michael Farah is the founder and managing attorney of the Farah Law Firm. Mike graduated from the University of New Hampshire School of Law and is licensed to practice law in Texas and New York.

What can a tax lawyer do for a business?

A tax lawyer can advise your business on major decisions like whether to switch to an S-Corp from an LLC. They can also point out the potential liabilities and any overall structure protections. Their law license then allows them to complete the legal documents needed to make things happen.

What is tax lawyer?

A tax lawyer is a legal professional who graduated with a law degree and specialized in the very complicated world of tax law. A tax attorney must pass the bar in the state they wish to work just like any other lawyer. But what does a tax attorney do?

How many small businesses get audited every year?

The most common fear is an audit, but that does not happen as often as you would think. Only about 2.5% of small businesses in the United States get audited every year.

When is the right time to hire a CPA?

When Hiring a CPA is the Right Choice. The best time to hire a CPA is when you’re not dealing with any formal legal issues or extra-complicated tax matters. Choose a CPA when creating a basic financial plan for your business, or for your personal finances.

Is Liberty Tax a CPA?

The tax prep people you see generic chains like Liberty Tax or Block Advisors are generally not CPAs. However, they both provide similar tax services like: A CPA helps greatly with complicated business tax situations, especially when you have a lot of money coming in and going out.

Can a CPA do everything?

Trying to decide between hiring a tax attorney or a CPA? It depends on your business’s tax situation. Keep in mind that a tax attorney can do basically everything a CPA can do. But they also have the legal background and license to address court-based matters.

Contract Creation

One of the critical points in investing is utilizing a contract that offers you the most protection. If you’re utilizing a licensed Realtor, they may have access to attorney approved state forms; however, if you’re buying off-market or selling For Sale By Owner, you need a comprehensive contract that will protect you as the buyer or the seller.

Conducting Closings

In some states, closings are routinely held at title companies; however, many states still utilize attorneys to conduct closings. Regardless where you live, you have the right to hire an attorney to conduct your closing.

Offering Legal Advice

As a seasoned real estate investor myself, I rely heavily on my attorney’s advice. Prior to starting any project, I consult my attorney about my future goals, potential risks, and reducing liability. These meetings do not have to be formal. In fact, the vast majority of communication is done via emails and phone calls.

Creating LLCs and Partnerships

For both financial and liability reasons, a real estate investor should consider forming a partnership. There are multiple types and consulting an attorney can provide you with the most logical choice for your situation and goals.

Greater the Risk, Greater the Reward

Ask any experienced investor or attorney, investing in real estate can be risky…not just financially, but legally. Don’t let the risks hinder you from starting your real estate investing journey, however. Operating wisely and legally will offer you the most protection.

How does a tax law firm help property owners?

Our tax law firm helps property owners in the process of appealing their real estate tax bills. Although, the process of appealing real property taxes varies depending on the jurisdiction, home owners or real estate owners may appeal their real property tax bills on different occasions. Usually, property owners begin appealing their tax bills ...

What happens if you don't get a property tax in Maryland?

If the taxpayer fails to convince Maryland State Department of Taxation to lower the amount of the real property tax, the property owner may appeal to the Maryland Tax Court. Decisions of the Maryland Tax Court may be further appealed to higher courts.

What happens if you don't pay property taxes?

Failure to pay real property taxes on a timely basis and the resulting real property tax delinquency may lead to imposition of tax liens, tax levies and tax seizures by state taxing authorities . Real property tax lien and tax levy disputes related to delinquent property tax obligations may be protracted and costly.

Is real estate tax a burden?

Real estate or real property tax is one of the burdens of home-ownership. Many home owners in Maryland, Washington, D.C. and Virginia justifiably feel that the government’s tax assessment overestimates the value of their real property and seek real property tax relief.

Can you appeal a tax bill in Maryland?

Usually, property owners begin appealing their tax bills when they receive an assessment notice ( called Notice of Assessment in Maryland) from the state government. But, for example, in Maryland they can also file an appeal when they purchase the property or by filing a petition for review.

What is a developer who holds inventory property for sale to customers called?

In the tax cases, a developer who holds inventory property for sale to customers is often referred to as a “dealer” in real estate.

What is the deduction for donating property to charity?

If you own property that is not inventory for more than one year and you donate that property to charity, your deduction is (generally) equal to the fair market value of that property. Solely for purposes of this Note #16, let’s call that property that is not inventory a capital asset.

How long can you hold property for charity?

Here is another relevant rule (again, very simplified): if you own property for one year or less, and you donate that property to charity, your deduction is limited to cost or basis. This rule is generally referred to as the “holding period” rule.

Can a developer change his mind?

The case law is indisputable that property once classified as inventory can, under various circumstances, be classified as a capital asset. Or, put another way, there are a number of cases that say absolutely yes, a developer can change his mind.

Is land considered inventory?

So to start with, in most ( but not all) cases, if a real estate developer owns land and has been moving through the development process with that land, filing applications, filing plans, seeking regulatory approvals, that land is treated as inventory. In some cases, for technical tax and planning reasons, that land is not treated as inventory, ...

Does holding get a deduction for bargain sale?

According to the revenue ruling (and also according to good tax sense), Holding does not get a deduction this year for the bargain sale, but assuming the option is exercised according to its terms Holding gets the deduction in a later year.