A Solid Foundation in Real Estate and Construction
In one way or another, elements of the “bricks and mortar” industries touch nearly every one of our clients. Whether you own a single-income property, are a real estate developer or subdivider, structure multi-tiered real estate investment partnerships, or you are a large public works construction contractor, our accounting, tax, and consulting practice specialists have the industry knowledge you need to help you achieve your financial and operational goals.
The real estate and construction industries present unique challenges and opportunities, and they have complex financial and regulatory requirements layered on top. MichaelSilver has an experienced team of professionals with the depth of experience and the expertise to help you navigate the issues and avoid set-backs.
Real estate investment properties (residential, retail, commercial, and industrial) are at the core of this industry. Whether the investments are for speculation, development, or held as income producing property, our team understands the complex accounting and tax issues associated with each, and can provide guidance and assistance from acquisition through ultimate sale.
We also serve other related industries that are not part of the ownership of real estate, but are components of the industry. These include:
- Real Estate Brokers
- Property Management Companies and Homeowners Associations
Our full range of services includes:
Tax Strategies and Compliance
From structuring the deal, to maximizing profits or the utilization of tax losses, to taking advantage of all applicable credits, the complexity and inter-relationship of tax code provisions are often complex and confusing. Our team, supported by 20+ tax professionals, has the experience and insights that can help ensure that your venture achieves its goals. We can advise on:
- Selection of Appropriate Business Entities
- Optimal Ownership Structure
- Appropriate Debt Structure to Ensure Loss Utilization by Investors
- Tax Projections
- Allocation (Profit & Loss) and Distribution Issues
- Accounting for and Allocation of Project Costs on Subdivided Real Estate
- Planning for Section 1031 Tax-deferred Exchanges, Including Reverse Swaps
- Installment Sales
- Cost Segregation Studies
- Review of Applicable Asset Acquisition Purchase Agreements to Ensure Optimal Asset Classifications
- Involuntary Conversions
- Partnership Buy-outs
- Benefit Analysis and Calculations Related to Section 754 Basis Step-up elections
- Tax Planning for Owners and Investors
- Wealth Transition and Estate Planning
We have extensive experience in all areas of tax compliance, including individuals, partnerships and LLC’s, corporations, S corporations, and homeowners associations.
In addition, we understand that your projects could be local or anywhere across the U.S. No matter where your investment is situated, we can advise on the varying tax laws that are specific and unique to any geographic region. We also have extensive experience in State &amp;amp;amp;amp; Local Tax — our experts include two tax partners, supported by a full tax team, all deeply experienced with state and local filing requirements in all 50 states.
Accounting and Audit Services
No matter the size of the project, accurate and timely financial data is critical to understanding and managing real estate. We have the expertise to provide quarterly and year-end financial statements tailored to the real estate industry, providing the knowledge you need and complying with lender and debt covenant requirements. We can provide:
- Audits, Reviews, or Compilations
- Cash Flow Analyses and Forecasts
- Bookkeeping Assistance
- Internal Control Evaluations
- Special Agreed Upon Procedures
- Analyses Related to Revenue Recognition on Subdivided Real Estate
Consulting and Other Value-Added Services and Solutions
Few other industries offer the array of sophisticated planning opportunities as those available within the real estate industry. Our consultants have a finely-honed understanding of the real estate environment, including its nuanced challenges and risks, and can leverage that information into practical strategies designed to uncover impediments to the success of your project. We can counsel on:
- Business Valuations
- Commercial Lease Negotiations
- Sale/Purchase Transaction Analysis
- Commission Plan Design
- Systems and Procedures Consulting
- Mergers and Acquisitions
- Due Diligence
- Long-term Business Planning
- Succession Planning
A cyclical industry that is highly subject to boom and bust, construction contractors need to manage risks often associated with improper estimating, inefficient labor usage, material price variances, and waste. There is also the potential for fraud.
Construction contractors combat these risks with timely and accurate financial reporting, not only in their basic financial statements, but also contract by contract, using job-costing systems.
MichaelSilver’s construction contracting specialists have experience in structuring cost reporting systems that effectively manage contract performance. We can also provide guidance and advice on the implementation and operation of these systems.
Banks and bonding companies take a keen interest in the quality of the job-costing system as well as the financial reporting. We are well-versed in the application of the appropriate unique construction contracting accounting principles and financial statement presentation; we can also provide audit, review, and compilation services, when necessary.
Additionally, we provide consulting and guidance for construction contractors in complying with the complex requirements of the Internal Revenue Code. Some of the services we offer include:
- Advising On
- Job-costing Methods and Systems
- Control Procedures for Field Equipment
- Labor Cost Reporting and Labor Controls
- Certified Payroll Reporting
- Assurance Services
- Audited Financial Statements
- Reviewed Financial Statements
- Compiled Financial Statements Monthly, Quarterly, or Annual
- Tax Planning
- Tax Compliance
- Succession and Entity Planning