Why SMB CPAs is the Best Choice for Real Estate Accounting
There’s no denying the realm of real estate accounting and auditing can get complicated. While there are a lot of tax incentives available, they are always changing. Furthermore, the current administration is looking to potentially make drastic changes in the overall tax code. Jacob Sanders, SMB CPA and Partner, says “there have been few times in my career that require more tax planning for our clients than right now.”
SMB CPAs is a trusted partner with a reputation as the go-to real estate accounting partner that extends well beyond Springfield, Missouri. Our clients trust our partnership and rely on our expertise to guide them through sophisticated and complicated situations. We sat down with SMB Partner and CPA, Jacob Sanders, to understand a little bit more about what makes SMB the best choice for your real estate accounting needs.
- SMB CPAs are true experts in real estate accounting. While SMB has a beautifully diverse client base and can offer a wide array of accounting services, we are known for our expertise in sophisticated real estate transactions and taxation. We have many years of experience working with clients in the complicated fields of historic and low-income tax credits, as well as 1031 exchanges, cost segregation studies, and opportunity zone transactions. These specialty areas and years of experience have helped us develop a wide ranging network of other professionals needed to help round out a successful development team.
- SMB understands LIHTC and HTC regulations and requirements. SMB CPAs takes the utmost care to ensure compliance with regulations. There are two areas of concern with these types of projects: the first is making sure that they are properly set up on the front end. We work with the development and investment team to ensure that the structure and assumptions are properly accounted for in the pre-project due diligence phase all the way through cost certification and receipt of tax credits. Then, there are various compliance requirements to contend with during the recapture or compliance periods associated with these types of projects. Our tax and audit teams work closely with the clients and their management teams to ensure that the projects abide by all regulatory and reporting requirements.
- SMB knows no two properties or clients are the same, so our approach is individualized. SMB works with strict audit rules put out by various agencies, but our approach is tailored to each audit to fit the specific needs of our clients. The most important thing for us to understand is the client needs on the front end and use that knowledge to establish attainable expectations. Because this is a very deadline driven industry, it is critically important for us to keep communication open with the owner and management teams and strive to meet the expectations we’ve agreed upon. SMB’s goal is to get the work done in a timely manner with the least amount of stress on the owner and management teams.
- SMB CPAs can provide detailed cost segregation studies. Cost segregation studies are an excellent way to get a quicker return on investment for clients purchasing or building real property. The conventional way of thinking is to simply assume that the cost of the construction is associated with the real property, and, therefore, depreciated over either 27.5 or 39 years. However, a cost segregation study allows us to dive deep into the costs associated with a building purchase or construction and determine how much of that cost is really associated with other classes of assets, such as land improvements and equipment, that are not only eligible for shorter depreciable lives, but may also qualify for bonus depreciation. This will allow much larger depreciation deductions in the year of and immediately following the purchase or construction.
Whether you are a real estate developer, real estate owner looking for an exit plan, or someone just getting started looking for the best way to grow a portfolio, SMB CPAs can help you achieve your goals. Don’t hesitate to contact us and we can discuss more about your individual needs.