TAX2616. Real Estate Exit Strategies

This session provides a practical, tax‑focused examination of exit strategies for real estate held in a trade or business. Participants will explore how disposition decisions—such as taxable sales, tax‑deferred exchanges, installment sales, recapitalizations, and partial exits—affect after‑tax proceeds, risk exposure, and long‑term planning outcomes. Emphasis is placed on advanced planning considerations for partnerships and closely held entities, common structuring pitfalls, and the importance of timing and transaction sequencing. The discussion highlights how tax advisers can add value by identifying irreversible decisions early in the exit process and aligning tax strategy with business and ownership objectives.

Learning Objectives:

• Evaluate and compare tax consequences of common real estate exit strategies, including outright sales, Section 1031 exchanges, installment sales, and staged transactions, with an emphasis on how these alternatives affect after‑tax proceeds and risk.
• Identify advanced planning issues and potential pitfalls in partnership and entity‑level real estate dispositions, including depreciation recapture, hot asset exposure, step‑transaction concerns, and state and local tax implications.
• Apply a structured decision framework to advise clients on real estate exits by integrating tax considerations with business objectives, ownership structure, and long‑term planning goals.