AI is the current top trend in technology. Presenters in the workshop will provide an overview of that trend and will engage attendees in exploring specific examples of how it is being deployed in use cases for real estate and construction. 

Learning Objectives:

• Understand how construction-related companies are currently deploying a variety of AI-powered technologies and what emerging ones are likely to be most valuable
• Hear about specific use cases where AI is proving value to companies in real estate and construction

This course will provide an introduction to the construction industry, including general risks that contractors face, and accounting considerations unique to the construction industry. This course will also cover the relationship between construction contractors, CPAs, and sureties. 

Learning Objectives:

• Understand unique industry and accounting considerations for construction contractors
• Learn about the relationship between construction contractors and service providers

Join futurist Greg Lindsay for an eye-opening exploration of how emerging technologies, climate change, and shifting demographics are reshaping the built environment and real estate industry. This session delves into the intersections of remote work, artificial intelligence, augmented reality, autonomous delivery systems, and climate resilience, offering a compelling vision of future cities and living spaces. From the rise of 15-minute cities to the potential of AI-driven urban planning, Lindsay examines how these forces are transforming residential, commercial, and industrial real estate. Discover the challenges and opportunities facing the industry as it adapts to new realities of hybrid work, evolving retail landscapes, and the pressing need for climate-adaptive housing solutions.

Learning Objectives:

• Identify key technological trends, including AI, AR, and autonomous systems, that are reshaping real estate and urban development.
• Evaluate the impact of remote and hybrid work models on office spaces and residential preferences.
• Analyze the potential of new retail and logistics models, such as drone delivery and automated micro-fulfillment centers, on commercial real estate.
• Assess emerging housing typologies and development concepts that address changing demographics and environmental concerns.
• Identify potential opportunities for innovation in real estate products and services in response to technological and societal shifts.

This course offers an exploration of internal controls specifically tailored to the construction industry. Participants will learn about the elements of internal controls, as well as internal control systems to mitigate risks. The course will cover key areas such as estimating and bidding, project cost management, contract billings and examples of fraud schemes. Attendees will gain practical insights into ensuring compliance and safeguarding assets to enhance financial reporting accuracy, all within the context of the construction environment.

Learning Objectives:

• Review the fundamentals of the overall control environment
• Gain an understanding of key controls in the construction environment

Join us for an insightful panel discussion exploring the dynamic world of emerging fund managers in real estate. As the industry evolves, new managers are carving out niches and leveraging innovative investment strategies to drive growth and raise capital in the current competitive market. The panel will delve into the opportunities and challenges faced by emerging fund managers in the real estate industry. Topics will include access to capital, establishing a track record, navigating regulatory landscapes, and the role of technology and data in shaping investment strategies. The discussion will provide valuable perspectives on key factors and solutions to succeed as an emerging fund manager in today's real estate environment.

The session will provide an overview of US real estate investment fund accounting practices including details around qualifying as an investment company, different reporting models that exist, and fair value disclosures which are common for these entities.  The session will also provide an introduction to incentive fees and allocations. 

Learning Objectives:

• Understand the basics of qualifying as an investment company, as well as, common US real estate investment fund accounting practices
• Understand common features and auditing considerations for incentive fees and allocations

• Session will cover the current state of the lifetime exemption and how to effectively and strategically transfer assets to future generations in light of the pending sunset of the current estate and gift tax exemptions.

Learning Objectives:

• Identify the fundamentals of gift and estate tax
• Recognize how the exemption amount will be reduced in 2026 and the calculation behind planning to use the exemption prior to the end of 2025.
• Identify what the tax cost will be if there is no estate planning for medium to large estates.
• Identify planning ideas for small, medium and large estates.
• Determine the consequences of gifts when debt exceeds basis.

This course covers common causes of construction contractor failures, the different types of contracts and contractors, and revenue recognition for contracts using percentage of completion method.

Learning Objectives:

• Common Causes of Construction Contractor Failures
• General Information as it Pertains to the Construction Industry
• Revenue Recognition in a Percentage of Completion Environment

Baby boomers are increasingly searching for a tax efficient way to exit/monetize their equity in construction companies at an attractive transaction amount. This presentation shows how an Employee Stock Ownership Plan (ESOP) can provide liquidity to selling shareholders in a tax-advantaged environment, all while providing an attractive retention tool for employees and creating a lasting legacy for selling shareholders. In addition, we will discuss the need for a comprehensive examination of the company's financial and organizational readiness, as well as an assessment of the potential impact on all stakeholders involved, prior to making the decision to sell a stake of your company to an ESOP. Finally, we will lay out the "roadmap" to progress from the feasibility stage to closing an ESOP transaction.

Learning Objectives:

• Understand the process of exiting your firm and what options are available to monetizing shareholder interests.
• Identify the pros and cons of an ESOP.
• Take a deep dive into the ESOP benefits available to selling shareholder(s), employees, and the company.
• Fully appreciate how a feasibility study will show the selling shareholders the expected payout from a sale, the timing of the payout and the taxes involved.
• Understand how the feasibility study will contemplate the financial viability of the Company to buy out the shares of exiting shareholder(s).

With advances in technology in all aspects of our lives, assurance professionals are not immune from change in how they deliver services to their clients. This session will explore the audit process and how automation tools can be used to increase efficiency and accuracy of audit procedures. While some of these tools are industry agnostic, others can be tailored for the construction industry. Join us as we discuss automation of the audit process from the perspective of those who are on the front lines with clients each day.

Learning Objectives:

• Review common delivery tools and methods of assurance services for construction companies
• Analyze current automation tools available to assurance professionals
• Identify tools to assist in various workflows of the audit process

IRA Energy Credit - Opportunities and Challenges for Contractors

The Inflation Reduction Act (IRA) created game-changing opportunities for many projects to capitalize on the largest energy investment in US history through tax credits. Complying with prevailing wage & apprenticeship (PW&A) under IRA can significantly enhance credit value by 5x and therefore many project owners are asking contractors to comply. It took nearly two years for the prevailing wage & apprenticeship requirement final rule - leaving many contractors in a state of flux as project owners are pushing penalties and/or loss of credit to contractors. Yet, this is also a perfect opportunity to take advantage of the $270B of tax credits and incentives in the longest running US energy policy.

Unfortunately, being 'in accordance with' Davis-Bacon but not a covered act, has created significant confusion for both credit seekers and contractors. This is tax credit compliance for the IRS and there are record-keeping requirements for an extended period of time. Baker Tilly will review fundamentals of the IRA base and adder credits, including domestic content, energy community and prevailing wage. This session will review the final PWA rule, explain recordkeeping and provide recommendations on how contractors can help their projects comply.

Learning Objectives:

• Participants will learn about the significance of the IRA in creating opportunities for energy projects through tax credits.
• Understand the compliance requirements of the IRA prevailing wage and apprenticeship (PWA) requirement final rule.
• Review the IRS’s record-keeping requirements related to tax credit compliance and maintaining records to defend under IRS audit.

This course covers general risk factors, direct and indirect job costs as well as allocation methods, and financial reporting and disclosing requirements.

Learning Objectives:

• Identify Different Types of Risk Factors for Contractors
• Allocate Indirect Job Costs and Properly Recognize Direct Job Costs
• Financial Reporting and Disclosures in the Industry

Identify areas within financial statements for construction contractors that present risks from a cash flow and cash management perspective, and identify best practices for effective cash management.

This update will cover accounting and auditing standards relevant to the construction industry effective for 2024-year ends.

Learning Objectives:

• You will be able understand and apply the most impactful accounting and auditing standards relevant to the construction industry for 2024-year ends.
• You will be able to evaluate the impacts of the SAS 143-145 on audit procedures in the construction industry and implement appropriate changes to audit procedures.

It has been a challenging year for valuations - both for professional appraisers and internal fund valuation preparers. This session will cover the current state of the capital markets, valuation challenges in a slow-deal environment, and what distressed sales can tell us (or not) about today's marks. 

Learning Objectives:

• Understanding of rules for inclusion of deferred capital gains and gain computations in 2026
• Understanding gain computation and elections for investments held for at least 10 years

Engaging panel discussion featuring CFOs from the real estate sector as they share their expertise key topics such as strategic financial planning, reporting, technology, staffing, and leveraging financial data to drive business growth. 

Learning Objectives:

• Understand the strategic role of CFOs in the real estate sector.
• Explore key financial management practices in the real estate industry.

This session will provide updates and strategies for year-end planning, an overview of changes for tax year 2024, and trending topics relevant to Construction tax. This session is an opportunity to interact with leaders in the construction tax arena. Attendees will gain: A review of current trends and developments impacting the construction tax industry Insights from a detailed discussion on tax topics presented in earlier sessions The opportunity to participate in Q&A on topics important to their company and/or practice.

Learning Objectives:

• Identify strategies for year-end planning for tax year 2024.
• Analyze tax topics presented in earlier sessions to provide additional insights in a more detailed, in-depth format.

Background on AI/ML in real estate, highlighting key issues specific to the real estate industry.  Overview of data and modeling and structuring AI/ML projects, system design and complexity, data strategy, AI strategy, and vetting AI projects for real estate.

Learning Objectives:

• Identify how AI/ML work in real estate and understand data and models
• How to Identify and Structure effective AI/ML projects
• Identify key elements of effective data strategy for AI/ML projects
• Identify attributes of AI/ML projects for effective feasibility vetting

Review various alternative strategies to defer gain, including installments sales, prepaid leases, like-kind exchanges, contributions to a REIT OP, disguised sale exceptions, basis strips, Bramblett capital gain planning and triggering multiple loss carryovers.

Learning Objectives:

• Identify alternative transaction structures to defer taxable gain in real property dispositions.
• Recognize the circumstances in which each of the various planning opportunities may or may not be appropriate.

In the talk we'll explore how captive insurance can be a game-changer for businesses in the construction and real estate sectors. 

• We will begin by discussing the challenges these industries face, including rising insurance premiums, limited coverage options, and the risks associated with traditional insurance models. 
• Next, we'll dive into how captive insurance can provide a tailored, cost-effective solution by offering greater control over risk management, stabilizing insurance costs, and enhancing cash flow.
• We will also cover specific strategies for implementing captive insurance, including the types of risks that can be covered, the tax advantages, and real-world examples of successful captive insurance programs in construction and real estate. 
• Finally, we'll address common concerns and provide actionable steps for construction and real estate professionals looking to protect their bottom line through captive insurance.

Learning Objectives:

• Understand the current challenges with the insurance market
• Understand how a captive insurance company can provide a cost-effective solution by offering greater control over your risk management.

This session features a panel of construction industry experts who will discuss and answer questions on accounting and auditing topics.

Learning Objectives:

• Answer questions about emerging topics in the construction industry.
• Provide updates and the impact of current accounting and auditing pronouncements.

This session will host our accounting experts to discuss the impacts of recent accounting pronouncements and auditing considerations. This is also an opportunity for participants to ask questions to the group.

Learning Objectives:

• Analyze the impacts of recent accounting pronouncements.
• Apply the impacts of recent auditing considerations.

This session will focus on the expiring TCJA provisions that are particularly relevant to real estate owners, operators and investors, including the deduction for real estate businesses and REIT dividends under Section 199A; the limitation for business interests deductions under Section 163(j); the availability of bonus depreciation for certain business expenditures under Section 168(k); the limitation on the deductibility of excess business losses under Section 461(l); and the deferral/elimination of capital gains with respect to investments in qualified opportunity funds under Section 1400Z-2, as well as the expiration of some ancillary provisions, including the cap on deductibility of State and local taxes; the elimination of itemized deductions; and the reduced marginal income tax rates on individuals. Additionally, we will discuss the tax impacts of the expiration of these provisions and some potential planning considerations that may be utilized to help mitigate or minimize some of the resulting negative impacts.  

Learning Objectives:

• Identify the real estate-related provisions of the TCJA set to expire within the next few years, and the potential impacts of the expiration of these provisions to real estate owners, operators and investors.
• Identify potential planning opportunities to help mitigate or minimize certain impacts of the expiration of these provisions.

This session will cover engagements performed under preparation, compilation and review standards (SSARS engagements). We will address difference among engagements, procedures performed, and common matters considered for construction contractor engagements.

Learning Objectives:

• You will be made aware of difference among engagements, procedures performed, and common matters considered for construction contractor engagements.
• You will be made aware of current activities of ARSC related to SSARS engagements

In the competitive construction industry, retaining top talent is crucial for sustained success. This session will equip construction company leaders and advisors with the knowledge and tools to develop compensation strategies that enhance retention of key employees. Participants will explore the advantages and disadvantages of compensation alternatives, including restricted stock, stock options, profits interests in a partnership, and non-qualified deferred compensation, from both business and tax perspectives. Additionally, the session will cover how these compensation strategies can be integrated into broader ownership succession planning.

Learning Objectives:

• Identify tax-efficient compensation strategies for retaining top talent.
• Evaluate alternative compensation strategies.
• Apply equity-based compensation concepts to ownership succession planning.

Emerging Trends in Real Estate® is a trends and forecast publication now in its 46th edition, and is one of the most highly regarded and widely read forecast reports in the real estate industry. Emerging Trends in Real Estate® 2025, undertaken jointly by PwC and the Urban Land Institute, provides an outlook on real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues throughout the United States and Canada.

Learning Objectives:

• Highlight interviewees and survey participants' insights and outlook into real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues throughout the US and Canada.
• Recognize industry sentiment and views from interviewees and survey participants, which represent a wide range of industry experts, including investors, fund managers, developers, property companies, lenders, brokers, advisers, and consultants.

• Troubled debt restructuring and working with lenders:
• Lenders are getting short term extensions bc they don’t want to recognize losses. We keep hearing about this looming maturity bill coming due and it keeps being pushed.
• Banks are not willing to take properties back, they just want to do short sales.This is where the PE debt market is popping because big banks aren't lending and their getting high interest debt.
• Can private lenders fill the commercial real estate banking void with a deluge of loan maturities on the horizon?/nonbank lenders that are trying to fill the void - commercial bank lending is limited, very conservative underwriting
• Accounting: how do you account for it, what are the key things you need to be thinking about looking for?
• Troubled Debt Restructuring - FS - Impact Debt accounting considerations as high-volume maturities occur in the current interest rate environment (troubled debt restructuring, debt extinguishment versus modification, property foreclosures, etc.)