Real Estate Tax

Whether you own real property for yourself or engage in frequent real estate transactions, one of the main issues you need to face are real estate taxes. Nearly everything you do with these valuable assets can have significant tax implications, from making improvements and allowing easements on the property to selling or buying parcels of land.

At Hart David Carson, we have decades of experience dealing in real estate transactions, improvements, and maintenance issues, including mitigating the tax obligations often incurred by these actions. Our expert attorneys can assist you through the process of managing and transferring real property in a way that keeps taxes to a minimum and ensures the maximum profitability of your investments.

Real Estate Transactions and Transfers

Every investment you make can reflect in your taxes, including real estate. When you make any kind of transaction or transfer, you may incur taxes such as capital gains taxes and real estate transfer taxes. These can occur on multiple levels, including locally, at the county level, and then again from the state of Illinois, so if you’re not careful, you could see a large portion of your profits evaporate due to taxation.

To minimize these tax obligations, it helps to time and structure each transaction carefully. For instance, simply selling property could incur a massive capital gains tax, whereas performing a “like-kind” 1031 exchange can defer capital gains taxes and increase the growth of your investment portfolio.

REITs and Other Investment Vehicles

Real estate investment vehicles provide a great deal of value to investors, and they can provide certain tax advantages as well when they are structured and managed correctly. In certain structures, such as a real estate investment trust (REIT), if they handle their income properly, they are largely exempt from taxation at the trust level.

Real estate mortgage investment conduits (REMICs) are another way to securitize real estate in a way that affords certain financial benefits while also being exempt from federal taxes.

Structuring these special purpose vehicles and using them in a tax efficient way requires extensive knowledge of these structures as well as the state and federal laws that pertain to them. Hart David Carson, provides this expertise to clients throughout Illinois.

Ad Valorem Appeals

The valuation of a property will impact the way it is taxed, and at times, the assessed value may not be entirely fair. Property tax or “ad valorem” appeals can help prevent unfairly high taxation of your real property by pointing out errors in assessment, discrepancies with other properties in the same category, and so forth.

To be successful in the appeals process, legal representation goes a long way. We can help you appeal an assessment on your real estate property in order to keep your tax obligations down.

Legal Assistance With Real Estate Tax Issues

Whether you need assistance maintaining the tax efficiency of an expansive investment portfolio, operating an investment vehicle in a tax efficient manner, or simply appealing an assessment, Hart David Carson, provides the experience and legal acumen needed to look after your best interests. 

To schedule a consultation with our experienced attorneys, contact Hart David Carson, today.