(855) Marcum1 | FOLLOW US           
Marcum LLP
  • EVENTS
  • OFFICES
  • CAREERS
  • SUBSCRIBE  
  • 中文
Marcum LLP
News

As Seen In

 

In This Edition

Real Estate Taxation

Article Co-Authored by Russell Lightman, Tax & Business Services Partner, "Saving Taxes and Enhancing the Value of Real Property" Featured in Real Estate Taxation

Featured: Russell Lightman, Partner, Tax & Business

Share:

Excerpt:

Saving taxes tends to drive most discussions between advisors and clients, but enhancing asset performance and principal protection are also worthy of consideration. By maximizing asset-class entities' and equities' performance as well as reviewing the applicability of making Section 1031 elections and using cost segregation, advice in these areas help clients achieve additional economic benefits they might not have considered on their own.

The Challenger of Wealth
Wealthy families often own large amounts of real estate that may be held by the client, the clients' children, and trusts for family members. These assets are often held for many years, sometimes for generations. Complicating matters is that most real estate ventures are usually owned in multi-tier controlled entities, often formed as limited liability companies (EEGs) or limited partnerships (LPs). Also, the real estate may be subject to thirdor related-party liens.

There are a variety of techniques for saving taxes and increasing cash flow/yield associated with real property assets, but taking advantage of them must occur after a thorough review of current laws and each individual situation. Options are available for assets that are highly appreciated and those that have had disappointing results, but there is no "one size fits all" solution.

Using Partnerships
The merits of placing real property assets into LLCs or LPs as well as trusts for asset protection have been well documented. What advisors and clients must be aware of is that there must be a legitimate business purpose for any equity transfer; tax avoidance cannot be the primary reason.'

Preventing fractionalization of the real estate over years and providing for successor management are common arguments for establishing partnerships, as is protecting the assets from creditors or litigants who might seek to seize property if the assets were directly held. Other reasons could include market and economic risks for given asset classes and lack of diversification.

Click here to read full PDF Version >>

 
Featured
Russell Lightman

Partner
Tax & Business
Needham, MA
 
 
HAVE A QUESTION? ASK MARCUM
 
STAY IN TOUCH.

SIGN UP TODAY FOR MARCUM'S NEWSLETTERS.

ABOUT MARCUM

Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., Grand Cayman and China.

Learn More

CONNECT WITH US
               
OFFICES

Headquarters
750 3rd Avenue, 11th Floor
New York, NY 10017

Find an Office

(855) MARCUM1
info@marcumllp.com

FOUNDATION

Marcum Foundation

AFFILIATION

Leading Edge Alliance

DOWNLOAD THE MARCUM ON THE GO APP

© 2016 Marcum LLP. All Rights Reserved.
Privacy | Legal | Sitemap