Real Estate Services

San Diego Real Estate Tax Services

I work with long term investors in real estate. Areas of attention include bookkeeping practices and then extend into such issues as whether an expenditure is a repair or whether capitalization is required, entity structure alternatives, debt structure including concerns about basis and at-risk loss limitation provisions, passive loss rules, the requirements to be a qualified real estate professional, and the probable tax effect of property disposition alternatives such as tax deferred exchanges. In my office, I emphasize client communication and transactional planning to achieve client expectations and results.


Tax Deferred Exchange Services [ “1031 Exchange” ]

Following is a list of some of the services provided in connection with clients involved in a “1031 exchange”:

  1. Transactional planning
    1. Calculating basis of property to be transferred [“relinquished property”]
    2. Evaluating alternative proposed transactions and resulting probable taxable “boot”
    3. Determining client’s tax liability resulting from taxable boot and cash required to pay the related federal and state tax due
    4. Consideration of whether relinquished property constitutes “property held for productive use in a trade or business or held for investment” and provide advice of the “held for” requirement in respect of the replacement property
  2. Completed Transactional Analysis and Tax Reporting
    1. Obtain all relevant factual and supporting documentation including “Final” closing escrow statements, title documentation, relevant facts regarding debt paid off by escrow,
    2. Work with your qualified intermediary and attorney as necessary to obtain factual transactional information for tax reporting purposes
    3. Calculation of realized and recognized gain, basis of replacement property and preparation of IRS form 8824 for tax reporting purposes