This may be stating the obvious, but the tax consequences of a
real estate transaction are one of the most important aspects of the deal.
Although most generic measures of property value, such as cap rate and NOI seek
to exclude taxation in order to generate values that can be comparable
across investors, an individualized tax assessment of any real estate acquisition is essential to determining its true rate of return of and its opportunity costs.
Although I am not a tax professional, tax
expert or tax adviser, I would like to briefly discuss various real estate
investment tax considerations. I will attempt to address a few of the more
popular tax considerations at the property, entity and security level:
