Gain an understanding of the accounting and tax rules which create differences in real estate expenses.
U.S. accounting and tax rules are not always the same for reporting real estate development costs. In some cases, real estate costs have different methods due to construction and production periods. The timing of costs makes it difficult to categorize costs as capital expenditures or operating expenses. For tax purposes, the TCJA has added additional rules for small businesses that simplify some cost issues. However, recent tangible property regulations continue to add more issues for real estate businesses. This topic will provide you with an overview of the current treatment of real estate issues for businesses, including reconciling the capitalization of costs for book and tax income and expenses. The range of topics will include definitions and terms for accounting purposes, tax elections and methods, planning for the tangible property rules, and updating real estate businesses for the impact of TCJA rules.
Learning Objectives
- You will be able to identify accounting and tax rules which create differences in real estate expenses.
- You will be able to understand U.S. tax compliance issues regarding tangible property and TCJA rules.
- You will be able to maximize tax benefits from capitalizing real estate costs and claiming depreciation.
- You will be able to be aware of year-end tax strategies and examples of small business exceptions and elections.
Agenda
Definitions and Rules Under the Tax Cuts and Jobs Act (TCJA)
- Qualifying Small Businesses
- Production Period
- Direct Production Costs
- Real Estate Taxes
- Interest Expense
- Insurance Expense
Tangible Property Regulations and Rules
- Betterments, Restorations and Adaptations
- Change in Accounting Methods
- Repairs and Maintenance
- Grouping Real Estate Assets
- Disposition of Assets
Real Estate Tax Elections and Alternatives
- Capitalization of Taxes and Carrying Charges
- Depreciation Methods and Bonus/179 Expense
- Cost Segregation for Asset Classes and Lives
- De Minimis Safe Harbor Election
- Materials and Supplies
Tax Planning Cases and Examples for Discussion
- New Real Estate Development Issues
- Cost Segregation for Existing Real Estate Assets
- Repairs and Improvements on Older Assets
- Partial Replacements and Restorations
- Partial Disposition of Real Estate
Speakers
Thomas M. Kosinski, C.P.A., M.S.T.,
Ostrow Reisin Berk & Abrams, Ltd.- Member of tax department at Ostrow Reisin Berk & Abrams, Ltd., since 1994, and became a director in 2001
- Frequent speaker with the Illinois CPA Society covering federal and state tax updates, IRS matters, individual and corporate tax compliance, and flow-through income tax strategies
- Offers more than 25 years of experience providing strategic tax planning and technical advice for individuals and the owners of closely held companies
- Provides specialized tax planning services to his clients, which include high net worth individuals and business entrepreneurs
- Significant industry experience including real estate and commodities/securities
- Researchs and implements a wide range of federal and Illinois tax strategies, and represents numerous Illinois taxpayers during IRS and Illinois Department of Revenue audits
- Consults with firm clients on state and local taxation issues and manages firm issues relating to international taxation
- Assists U.S. based entities in planning for foreign operations as separate entities, branches or divisions
- Active member and a former president of the Illinois CPA Society Chicago South Chapter and a member of the American Institute of Certified Public Accountants
- Contributing author for a tax newspaper column and previously a co-author for a tax savings publication for individual taxation
- M.A. degree in taxation, B.S. degree in accounting, summar cum laude, DePaul University
Who Should Attend
This live webinar is designed for property managers, landlords, attorneys, presidents, vice presidents, building owners and managers, developers, housing officials, real estate professionals, government officials, planners, directors, administrators, and accountants.
