Tax and Accounting in Real Estate Transactions: Key Considerations for Buyers and Sellers, Including Capital Gains, Depreciation, 1031 Exchanges, and Leasing Tax Implications

| Falcon Rappaport & Berkman LLP

Matthew chairs FRB’s Taxation and Private Client Groups. He concentrates his practice in Taxation as it relates to Real Estate, Closely Held Businesses, Private Equity Funds, Family Offices and Trusts & Estates. He advises clients regarding tax planning, structuring, and compliance for commercial real estate projects, all stages of the business life cycle, generational wealth transfer, family business succession, and executive compensation. He also collaborates with other attorneys, accountants, financial advisors, bankers, and insurance professionals when they encounter matters requiring a threshold level of tax law expertise.

Matthew is known for his work on complex deals involving advanced tax considerations, such as Section 1031 Exchanges, the Qualified Opportunity Zone Program, Freeze Partnerships, Private Equity Mergers & Acquisitions, and Qualified Small Business Stock. He has served as a trusted advisor for prominent real estate funds, executives of multinational corporations, venture capitalists, successful startup businesses, ultra-high net worth families, and clients seeking creative solutions to seemingly intractable problems requiring tax-focused analysis.

I. Tax considerations in real estate transactions | 2:00pm – 2:30pm

• Tax implications for buyers and sellers
• Capital gains tax, depreciation, and 1031 exchanges
• State and local tax considerations
• Recent developments in real estate tax law

II. Tax issues in real estate leasing and investment | 2:30pm – 3:00pm

• Tax treatment of rental income and expenses
• Implications of lease agreements on tax liabilities
• Investment property tax strategies
• Identifying tax risks in leasing transactions

Break | 3:00pm – 3:10pm

III. Tax planning opportunities in real estate deals | 3:10pm – 3:40pm

• Strategies for tax deferral and reduction
• Utilizing tax credits and incentives
• Estate planning considerations for real estate holdings
• Structuring transactions for optimal tax outcomes

IV. Appraisal methods and reports: What you must know | 3:40pm – 4:10pm

• Understanding different appraisal methods (Cost, sales comparison, income approach)
• Key components of an appraisal report
• Common red flags in appraisal reports
• How to effectively use appraisals in transactions