Spring 2011 issue of Horizons

Real Estate – continued

Top Accounting Issues Managers Tracy Senf and Maureen Pardo highlighted the top accounting issues and

regulations under Generally Accepted Accounting Principles (GAAP). These issues have been a source of concern for investors, lenders, developers and CPAs given their impact on the financial statements. Pardo stated that “landlord/tenant master lease audits can be complex with the newer regulations.” She added “it’s important to deal with these issues on the front end when planning your audits.” Topics covered included the following: • Investment recording • Impairment • Consolidations under financial accounting standard 167 • Capital leases • Best practices for investor review of financial statements • GAAP vs income tax basis audits • Audit preparation Successfully Maneuvering Through DED Manager Bill Gawrych concluded the seminar by stating that “the best was saved for last” as he led the audience through a best-practice session on how to successfully manage a Missouri HTC application from start to finish. “With an increased number of issues that have arisen since the February 2009 rule changes, you need a score card to track your project at Missouri’s DED,” Gawrych said. He proceeded to cover the top Missouri HTC issues that, if not followed closely, can cause significant delays and reductions in HTC basis, such as: • Preliminary Approval • Developer Fee • Related Party

Bryan Keller, Partner-In-Charge of RubinBrown’s Real Estate Services Group, presented on the state of tax credit programs in early 2011.

“We were able to do a fairly deep dive and dig into the important issues regarding negotiating, sources/uses, top structure and tax issues on master lease transactions,” Taylor said. Some of the other issues covered included: • Related Party Issues • Leverage Sources • NMTC Fees • True Debt Concerns • Prepaid Rent • NMTC Equity • Capital Gain Upon Sale Or Exercise Of Put Top Tax Issues Partner Amy Broadwater led a session covering a variety of relevant topics, such as: • Disqualified Leases • Workout and Debt Restructure • Exit Strategies • Deferred Developer Fees

Raise Your Expectations

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