- Preliminary: This may include initial phone calls and a meeting in the developer's office to understand and address the anticipated position and methods including:
- A clear understanding of the business objectives and plans
- Ownership entities and tax planning presently in place or contemplated
- Present or contemplated accounting for recognition of lot sales income
- Capitalization of carrying and indirect costs
- Allocation of development costs to specific lots
- Accounting for golf course costs retained
- Club initiation deposits
- Other tax accounting items
Upon completion, a Preliminary Report of Findings and Preliminary Recommendations will typically be issued. This Preliminary Report will include an estimate of the potential benefits and costs for subsequent services.
General Real Estate and Entity Tax Planning: This includes traditional tax planning for real estate transactions, partnerships, LLC, or corporate matters utilizing Bill's thirty years experience in advising clients on real estate and related tax matters.
Income Structuring: These services typically include specific steps and actions to help defer or minimize the current recognition of net income from the sale of lots and further refine the potential benefits. We typically issue a final report or opinion, as appropriate, and we typically review all tax returns that include a recommendation that is implemented.
Golf Club Structuring: These services include working with legal counsel on legal matters and coordinate appraisal services, if any, required to implement any recommendations and a review of all documents, schedules and computations in connection with recommendations being implemented. We typically issue a final report or opinion, as appropriate, and will review all tax returns that include a recommendation that is implemented.
Club Tax Planning: These services include working with club attorneys to insure loan treatment for income tax purposes. Many seemingly immaterial factors may potentially raise significant risks to loan treatment. These include provisions for family succession and the treatment of members after 30 years. We work with the attorneys to thoroughly discuss such provisions and the risks that they pose to the anticipated tax treatment of the deposits.
Maximizing Depreciation: These services include performing a cost segregation study to maximize the amounts available for deprecation under Revenue Ruling 2001-60. We believe the amounts may be maximized by such a study with the identification of eligible direct and indirect costs and proper documentation will be provided as required by the IRS upon audit. The anticipated final ATG will require IRS examiners to review documentation for such amounts