For years Hedman Partners has been serving some of the biggest names in the real estate industry as well as many private, closely-held real estate developers and investors. Our firm focuses on residential and commercial development as well as the operation of residential, retail, and commercial properties. Real estate related clients represent roughly one-fourth of our practice.
We serve a variety of companies in the real estate arena, including real estate investors, land owners, developers, and large residential builders. We help our clients to maximize their return on their projects through proper tax planning and preparation, including 1031 exchanges. We also perform Agreed-Upon Procedures engagements on joint venture accounting records to ensure our clients receive their appropriate share of profit participation.
REAL ESTATE – TAX
REAL ESTATE – TAX
We assist our clients with all phases of real estate activity including acquisitions, operations, and sale. By properly structuring acquisitions of real estate, our clients can maximize income tax benefits and take advantage of estate planning opportunities. Acquisitions are also evaluated to determine if a cost segregation study is advantageous. We advise our clients with respect to “deal structure” in joint ventures and consult with their attorney to ensure the income and distribution provisions in their operating agreements have economic effect and are compliant with IRS regulations. We also assist our clients in structuring like-kind exchanges to maximize tax deferrals on the sale of real estate investments.
Real estate ownership is often held in a single-purpose entity, usually an LLC. Our firm prepares the required tax returns for many such entities. Accordingly, we are highly experienced in dealing with the many complex compliance issues that arise in real estate development and investment. We are experts in the Section 704(b) regulations concerning partnership allocations.
When the economy and the real estate market suffer a dramatic downturn, we help our clients plan for workouts of troubled real estate investments. These situations often involve the consideration of worthless partnership interests and other real estate positions, the characterization of losses as “capital” or “ordinary”, the timing of such losses, and determination of income from the cancellation of indebtedness. We strive to maximize tax benefits from losses and minimize taxable income from the cancellation of indebtedness.
REAL ESTATE – AUDIT
REAL ESTATE – AUDIT
Hedman Partners conducts engagements unique to residential real estate development projects. Working with our clients, we establish procedures to test the compliance of agreements between our clients and the project builders. These engagements are typically performed on behalf of land sellers that participate in the profits along with the builders, or investors and lenders looking for an enhanced return on their investment.
Although the scope of our engagements varies, the procedures generally revolve around the profitability and cost reports originating from the builders of the projects. By obtaining pertinent project-related financial records, we can perform tests of key areas such as:
- escrow closing files for the reported sales revenues
- original contracts, change orders, and billings from sub-contractors
- payroll records for appropriate labor charges
- coding of expenditures for allocation to the proper cost codes
- related party transactions
- insurance and interest charges
- calculations of overhead and management fees, “soft costs” and other allowances
Hedman Partners understands the volatility of the real estate market, and the various ways construction projects are structured between the parties involved. Those parties not directly involved with the development of the projects and ultimate sales, look to us as an independent source to perform these engagements.
If you have questions regarding the above or other real estate services that we provide, please feel free to contact us.
At Hedman Partners, our consulting services provide our middle-market business clients and their owners the ability to compare their performance against the competitive landscape, plan an appropriate exit strategy, and establish and accomplish personal goals. Our consulting services include:
- Benchmarking and industry comparisons using ProfitCents®
- Board of Directors consulting
- Business owner personal strategic planning
- Succession planning