Construction: Vigilance Pays Off With Best Business Practices in Residential Housing

One of GHB's clients develops residential housing units. When developing a neighborhood the overhead cost is allocated to each unit. GHB reviews and adjusts what is charged to overhead on development projects, in order to accelerate deductions and defer taxable income. We also work with real estate attorneys to structure the best type of entity (S-Corporation or LLC) to take advantage of capital gains versus ordinary income where possible. For example, where there are related parties in the deal, land sold for development can be taxed at 20% if an S-Corp structure is utilized; instead of 39% if an LLC is utilized. By analyzing best business practices for our real estate developer clients, GHB helps them to avoid paying excess tax by taking advantage of the best available tax rate.