Real Estate Tax Strategies: Incentives to Grow Your Practice

Posted by Jennifer Birkemeier on 4/26/17 8:57 AM


All politics is local. Many real estate tax-saving opportunities are as well.

Former Speaker of the House Tip O’Neill famously stressed the idea that “all politics is local.” In this political season, it’s important to remember that many real estate incentives are, as well.

We often stress in this blog that cost segregation is an excellent opportunity to provide additional services to your existing commercial real estate clients and to attract new ones. But if you want to provide the full range of services these clients need, you have to remember that tax incentives and commercial real estate go hand in hand. And not just at the federal and state level. The more local you get, the more an agency or elected official may be willing to support development of specific properties.

You Don’t Have to Be a Business to Have a Business Plan

Local governments frequently maintain an inventory of properties that they would like to see developed or redeveloped. Their business plans often call for experienced commercial real estate investors to lead these projects from the private sector side. In order to attract these investors, authorities are usually willing to discuss additional incentives that may be customized to the needs of each site.

A good starting point is to make contact with the economic development agency for a particular locality. Ask them about neighborhoods or areas within their district that might qualify for federal incentives, like a historic district. Also consider state credits, like New York’s historic tax credits and “brownfield cleanup” programs.

Once you know some of the sites that might qualify for federal and state tax savings opportunities, ask the local authority for information on any specific properties that they might want developed. When you find opportunities that may qualify for multiple credits at various levels, contact your clients who invest in real estate and gauge their interest. Introduce them to the local development agency and suggest a discussion about incentives that might help a city or region turn planned redevelopments into reality.

CSP360 for Real Estate Tax Consulting

As your practice grows, we also want you to think of us as a real estate tax consultant that can help you develop creative, customized ideas that continue to deliver new value to your clients. When it comes to local development, CSP360 can help you with everything from concepts and agendas for meetings with local agencies to actual in-person support for a meeting that your firm hosts.

When it comes to other opportunities to improve your service as an advisor to commercial real estate clients, we have the experience and know-how to help turn your ideas into practical services.

Contact us to get started developing helpful real estate tax strategies for your clients today. Also, don't forget to view our other helpful articles such as, Three Lessons for Building Your Commercial Real Estate Practice Using 179D, to help you grow your real estate practice.

Tags: commercial real estate, Jennifer Birkemeier

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