Real Estate Taxes
Real Estate Tax Strategy
Tax Consequences Are Built Into Every Real Estate Decision. So Is Our Advice.
Real estate and taxes are inseparable. Every acquisition, disposition, refinancing, and restructuring carries tax implications that can significantly affect what an owner actually keeps. Most tax advisors understand the rules. KBF's Real Estate Tax team also understands what it means to sit on the ownership side, having worked across debt structures, development deals, and portfolio transitions alongside the people making those decisions.
"The tax question is never separate from the real estate question. The best outcomes come from treating them as one decision, not two."
Whether you are buying your first investment property, managing a multi-asset family portfolio across multiple states, or working through the tax side of a generational transition involving domestic and foreign holdings, our team helps you plan around the consequences of every decision before they become surprises. We serve clients nationally and internationally.
For clients who also need help evaluating what to do with a portfolio, coordinating advisors, or navigating a transaction, see our Real Estate Advisory services.
KBF Advisory Real Estate Tax service assists clients with:
Strategic Tax Planning and Structuring
We help clients build ownership and deal structures that minimize tax drag and preserve wealth over time.
Cost Segregation Studies
Identifying and reclassifying building components to accelerate depreciation deductions, improve near-term cash flow, and optimize the timing of tax benefits across a property's hold period.
Bonus and Accelerated Depreciation Planning
Maximizing first-year deductions through bonus depreciation, including analysis of qualifying improvement property, personal property classification, and the interplay with passive activity rules for each client's situation.
Entity Structuring for Real Estate
Advising on the formation and restructuring of LLCs, partnerships, S corporations, and other holding vehicles to optimize tax treatment, support multi-generational ownership arrangements, and position assets for eventual transfer or disposition.
Transaction and Exchange Planning
We guide clients through the tax mechanics of acquisitions, dispositions, and exchange transactions so that structure decisions are made before, not after, a deal is signed.
1031 Exchange Planning
Structuring like-kind exchanges to defer capital gains on real property dispositions, including coordination of identification periods, qualified intermediary selection, replacement property timelines, and the interaction of exchange proceeds with existing debt.
Delaware Statutory Trust (DST) and 721 Exchange Planning
Advising on DST investments as 1031 replacement properties and structuring 721 exchanges for clients seeking UPREIT interests, including analysis of diversification benefits, ongoing tax treatment, and long-term liquidity considerations.
Opportunity Zone Planning
Evaluating Qualified Opportunity Fund investments in the context of a client's broader real estate and tax position, including gain deferral mechanics, basis step-up thresholds, and exit timing to maximize available benefits.
Compliance and Portfolio Tax Management
We support ongoing tax compliance for real estate owners and help clients stay current with reporting requirements across complex ownership structures.
Real Estate Tax Return Preparation
Preparation of federal and state returns for real estate entities, including partnership returns, depreciation and amortization schedules, Schedule K-1 distributions, and passive activity tracking across multiple properties and ownership interests.
Passive Activity and At-Risk Rule Navigation
Analyzing passive activity loss limitations, material participation requirements, and real estate professional status elections to support maximum deductibility while maintaining defensible positions with taxing authorities.
Multi-Generational and Estate Planning Coordination
Working alongside estate and trust counsel on the tax implications of transferring real estate interests across generations, including step-up in basis planning, installment sales, family partnership strategies, and charitable giving structures involving real property.
Schedule a Conversation
Real estate decisions rarely wait for a convenient time. If you are managing a portfolio transition, evaluating a significant transaction, or simply trying to get a clear picture of what you own and what you should be doing with it, we are ready to talk through it. To learn more about our Real Estate Tax services, contact Scott Fouser at sfouser@kbfadvisory.com.