Real Estate Taxation

The members of Whiteford's Tax Section work hand-in-hand with our real estate attorneys to structure transactions in order to minimize the federal and state income tax impact on the parties involved in the transaction and to minimize the recordation and transfer tax implications. From the seller's perspective, the focus is on first attempting to structure the transaction to defer any gain inherent in the transaction, with as little economic risk as possible, and then attempting to assure the more favorable capital gain treatment, whether or not the gain is deferred. From the buyer's perspective, the focus is on attempting to structure the transaction to recover, for income tax purposes, the various costs relating to the transaction as quickly as possible and to ensure that the tax implications of any financing are as tax favorable as possible.

Samplings of the types of transactions that we have been involved are as follows:

• Purchases and sales of all types of commercial properties in the Baltimore Washington corridor
• Planning with respect to the development and subdivision of residential subdivisions
• Tax deferred exchanges
• Transfers of property to Real Estate Investment Trusts
• Transfers of property to and from business entities to their owners, including corporations and shareholders, partnerships and partners, and limited liability companies and their members.
• Tax planning with respect to commercial leasing transactions, including the structuring of “IRC 467 Rental Agreements”
• Tax planning with respect to the implications of the "IRC Section 465 At-risk" rules when nonrecourse financing is used as a funding source