Insiders' guide to real estate accounting

Insiders’ Guide to… Real Estate Accounting @petercuttini @georgeEdube @dubecuttini

Covering…1. Choosing a real estate accountant2. When, if ever should I incorporate?3. New rules for JV’s and partnerships4. Court cases you need to know about

RE Accountant …how do I choose?

A real estateaccountant is…someone who speaks your language

A real estateaccountant… invests in real estate

A real estate accountant is… like a heart surgeon

How to tell if you have a real estateaccountant• Do you invest in real estate?• How long have you invested?• What kind of real estate holdings do you and your clients have?• What percent of your accounting practice is devote to real estate matters?

Bonus: What else to look for...• Large vs. medium vs. small firms• Location vs. knowledge• Key team members and access• Integrity• Industry respect and demonstration of skills

Incorporate or not? …it depends!

Incorporate…why care?• Proper and flexible structure now saves $• Everyone is different• Preparation and organization generate additional savings plus helps provide security

Incorporate…framework1. Flexibility of choices2. Legal issues3. Taxation impact4. Financing perspective5. Investment and business considerations

Common business structures• Proprietorships• Corporations• Trusts• Partnerships• Limited partnerships• Joint ventures• Personal Service Businesses?

Multiple entities? Don’t get caught up in the excitement

New Joint Venture and Partnership Rules …how do they affect you?

Federal budget changes…• Year-end change requirements plus administrative practice change• Unclear transition rules• Announcements at October Ontario Tax Conference• T5013 expanded requirements

And another thing…RRSP mortgages budget vs. rumours

Court casesAnd the judge said…

Repairs vs. capital• Quantum issue $175k on $99l purchase Mbénar TCC,• Timing of repairs Hare TCC

Garron FCA and Antle FCA• Residency of trust• Documentation• Attribution rules with spouses

Bonus court cases• Bookkeeping & • Director’s liabilities integrity (various cases) (various cases) Details: http://georgeedube.com/?p=278 • Late filing re: elections• Failed JV and taking and RDTOH (Tawa larger/more active role Developments Inc. TCC) from loan (Von Realty • Tax losses for land Limited TCC) development wind-up (STB Holdings TCC)

Dube & Cuttini…Who are we? How we can help• Real estate investors • Save taxes• Real estate accountants • Structure assets• US and Canadian tax and business advisors • Protect investments• Working with clients across Canada and around the world Interested in an initial consultation? Contact us at: info@dubecuttini.com or 1.877.475.3823

Connect with usDube & Cuttini George & Peter• www.dubecuttini.com • @petercuttini• @dubecuttini • @georgeEdube • www.georgeEdube.com

Disclaimer• This presentation contains general comments and should NOT be acted upon without the advice of a qualified tax professional. While there may be similarities, every situation is different.

Insiders' guide to real estate accounting

by DubeCuttini on Nov 14, 2011

Accessibility

Categories

Tags

Upload Details

Usage Rights

1 Embed 273

Statistics

Insiders’ guide to real estate accounting — Presentation Transcript