Andy Immerman was a featured presenter during this teleconference program hosted by Strafford. This presentation provided an update for tax counsel and advisors on key tax issues to address in structuring agreements for real estate partnerships and joint ventures. The panel offered best practices for crafting provisions that reflect effective tax compliance and for planning going forward.
Strategically structuring agreements for real estate partnerships and joint ventures is particularly complex when it comes to federal and tax considerations such as the allocation of income, gains, losses, deductions and credits. To achieve a partnership's goals while minimizing tax for the entity and its members, counsel must take a comprehensive approach to structuring an agreement that anticipates both tax benefits and pitfalls inherent in real estate partnerships and joint ventures. Practitioners must be cognizant of unique issues in real estate partnership such as the tax consequences affecting in-kind contributions of property, allocations of future depreciation and gain or loss, the sale or exchange of contributed property, and the grant of partnership profit interests.
The panel examined the key tax issues that must be considered and tax consequences of each provision when drafting the partnership agreement for a real estate partnership or joint venture. The following topics were covered during the program.
- capital contributions
- distributions
- allocations
August 25, 2011