UHY has a history of providing experienced professionals with proven solutions to the real estate industry’s complex business, tax, private and public audit reporting complexities. Our real estate team combines years of financial experience, along with extensive industry expertise to provide proven business, tax and accounting strategies to:
ASSURANCE AND BUSINESS ADVISORY SERVICES
Our team’s diversity provides a multidisciplinary expertise utilizing a high level personalized UHY service ethic – the kind that earns trust, establishes sound working relationships and creates a solid foundation for future growth. As a result, our national and international resources are dedicated to providing our real estate clients with proactive technical accounting, tax, business and SEC reporting and compliance support that effectively and efficiently address the challenges and opportunities in today’s business environment. Our real estate team provides a comprehensive range of services to the real estate industry including:
We are contributors and reviewers of the AICPA Audit Risk Alert for The Real Estate and Construction Industry.
TAX PLANNING AND COMPLIANCE SERVICES
The Tax Cuts and Jobs Act allows for a potential 20 percent tax deduction for qualified business income generated from pass-through entities for tax years beginning after Dec. 31, 2017 (IRC Sec. 199A). The deduction is only applicable to pass-through entities that conduct a trade or business. Therefore, under the original law, it was uncertain if rental real estate entities leasing to third parties would qualify for this deduction.
Before tax reform, there were not many limitations on a business's ability to deduct interest expense on their tax return. However, beginning in 2018, tax reform will significantly alter the ability to deduct business interest expense for a great many taxpayers.
The UHY global real estate guide has been developed to provide property investors with information on rules and regulations from over 70 countries featured in the guide, covering areas such as real estate regulations (e.g. deduction of expenses and interests), tax rates (e.g. VAT, wealth tax and inheritance tax) and also touches on some tax planning techniques.
The Mortgage Credit Certificate program has issued a federal tax credit to first time homebuyers statewide. The homebuyer can credit 20 percent of their annual mortgage interest paid against their federal tax liability. This credit is good for the life of the mortgage. There are only certain mortgage companies that are participating in this program.
When an individual transfers real estate in the state of Michigan a real estate transfer tax fee is charged, which is percentage of the sales price. This fee is assessed both by the state and the county in which the property was sold. This fee is the seller's responsibility, unless otherwise agreed upon, and is reported on the "Real Estate Transfer Valuation."