Accounting for Real Estate: Real Estate Accounting
What you'll learn
- Learn the foundation of accounting for real estate
- Develop an understanding of the real estate acquistion process and how it is captured in the accounting system
- Understand the tax implications of the real estate transactions
- Comprehend how accountting helps real estate professional reduce their tax burden
- None required. Ideally, students should know a little bit about accounting
In this course, we explore the value of accounting as a key tool for improved performance for real estate businesses and investors. We will look at the best way to capture accounting information from the acquisition of the property from both the bookkeeping as well as tax perspective to its disposal (sale).
We will look into the accounting end and documentation as well as tax planning opportunities to help students develop a deeper understanding of both accounting and tax for real estate in an effort to assist real estate professionals/investors to make better-informed decisions about the portfolios.
Some of the most important topics we will cover include:
1. Pre-acquisition accounting
2. Acquisition accounting (emphasis on the cost-segregation study)
3. Real estate operations accounting (emphasis on depreciation and NOL)
4. Sale of real estate accounting
5. Tax planning opportunities (start-up deductions, exit strategies)
To make the content of the course easier to digest we will use a fictitious company, launched by Niva. Niva is interested in the real estate business. As a prudent investor, she recruits a world-class team of advisors to help her purchase and manage her first rental property. She brings on board a great broker, residential real estate attorney, accountant, property management company, and an inspector. As a brilliant real estate investor, she knows that many people have made catastrophic mistakes. She intends to reduce the likelihood of making those herself. After the acquisition, the property management oversees daily operations, while she focuses on overall asset management.
To ensure the learning in the course, we will make a number of assumptions in an effort to cover all the major parts of the real estate transactions, their respective accounting, and potential tax consequences.
Who this course is for:
- Real estate investors
- Property managers
- Other real estate professional
- Owners of accounting/tax firms
- Small real estate property owners
- Any person seeking to build their knowledge of accounting for real estate
Luntadila Paulo is a licensed Certified Public Accountant, Pan-African, global citizen, and entrepreneur. He has an MBA from Eastern Illinois University and a bachelor's degree in accounting from Michigan State University. He runs Yeto Accounting & Tax LLC, a Chicago-based professional services business. Paulo is also an investment banker with an international investment banking firm.
He has worked with entrepreneurs and investors in Nigeria, Angola, and Ghana as a consultant over the last 3 years. Paulo also worked as an auditor for one of the largest national public accounting firms where he served clients in the real estate and affordable housing industries. Paulo also worked as a consultant to hedge funds with a global fund administrator.
To give back to the community, Paulo is a SCORE Chicago mentor. In his spare time, Paulo enjoys cooking, playing soccer, and reading books on a variety of topics (mainly business and investing).