Accounting For Real Estate: Real Estate Accounting

From Acquisition to Sale

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
Requirements
None required. Ideally, students should know a little bit about accounting
Description
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 accounting2. Acquisition accounting (emphasis on the cost-segregation study)3. Real estate operations accounting (emphasis on depreciation and NOL)4. Sale of real estate accounting5. 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.

Overview

Section 1: Introduction

Lecture 1 Welcome to the course

Lecture 2 General Instructions

Section 2: Accounting for pre-acquisition costs

Lecture 3 Accounting for pre-acquisition stage

Lecture 4 Tax Implications at the pre-acquisition stage: first time vs. existing business

Lecture 5 Accounting Best practices

Lecture 6 Tax Tip: Start-Up and organizational deduction

Section 3: Accounting for Acquisition costs

Lecture 7 Accounting for acquisition stage

Lecture 8 Tax Implications at the acquisition stage

Lecture 9 Accounting best practices

Lecture 10 Tax Tip: Cost segregation Study

Lecture 11 BONUS: Additional Items to Consider in Acquisition

Section 4: Accounting for Rehab Costs

Lecture 12 Accounting for rehab costs

Lecture 13 Tax implications for rehab

Lecture 14 Accounting best practices

Lecture 15 Tax Tip: Capitalize or Expense

Section 5: Holding Period: Operations Stage

Lecture 16 Accounting for operations of rental properties

Lecture 17 Tax implications of operating rental properties

Lecture 18 Accounting best practices

Lecture 19 Tax Tip: Depreciation and NOL

Section 6: Accounting for Sale of Rental Property

Lecture 20 Accounting for sale of real estate property

Lecture 21 Tax Tip: 1031 exchange

Section 7: Additional Lecture: Accounting for Investors

Lecture 22 RE Investors Accounting

Section 8: BONUS Model: Yeto Real Estate Company

Lecture 23 Welcome to Bonus Module

Lecture 24 Forming an Entity

Lecture 25 Deal Sourcing to Close

Lecture 26 Holding Period

Lecture 27 Exit

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