Tax Services Overview: Partnerships
Planning – We take a proactive approach by working with our clients to reduce
taxes and develop creative ideas and solutions, which minimize surprises for tax
purposes. We communicate on a regular basis and prepare tax projections as needed.
Preparation – We prepare and review an accurate return with the appropriate
documentation by using the most highly qualified personnel. We work with clients
to provide the relevant information on a timely basis.
Research – There are many gray areas of the tax law that depending on the
facts and circumstances will have many different answers. Our team of experienced
tax professionals will research the particular tax area with the intent of resolving
the issue and backing up the stated position that will stand up against a governmental
objection.
Audit Assistance – We can assist clients in dealing with various tax authorities
at the federal, state and local levels, including all kinds of taxes. We will provide
only the records requested by the auditor and encourage the client to have the auditor
meet with us in our office, so that they do not interrupt the business.
Partner Transactions – There are special rules in place for certain transactions
involving partners in a partnership. The IRS has developed rules to discourage the
structuring of certain transactions in an abusive manner. We help our clients understand
the correct way to set up and report such transactions, so that they will withstand
the scrutiny of the IRS.
754 Election (Basis Step Up) – When a new partner joins an existing partnership,
the new partner may not expect to be allocated gains or losses by the partnership
after having just paid fair market for his or her share of the partnership. The
new partner can have a different basis in the assets then the partnership does.
To alleviate this problem, we can calculate the Sec. 754 Basis Adjustment necessary
to equalize the basis of the partner and the partnership.
Low-Income Housing Credit – One of the strengths of our real estate business
has been our active involvement in supporting low-income housing tax credit (Section
42) developments from the inception of the program. Since then, our team has assisted
clients with hundreds of developments that range from new construction to the rehabilitation
of older buildings. These clients include nonprofits, community agencies, and for-profit
developers, some of which incorporate mortgage revenue bonds and all of which contain
a wide variety of housing (i.e., specialty housing, family developments, scattered
sites, and senior and assisted living).
Rehabilitation Tax Credit – The rehabilitation tax credit is earned for qualified
rehabilitation expenditures on pre-1936 constructed commercial buildings (10 percent
federal credit) or certified historic structures (20 percent federal credit).