Sax’s Real Estate Practice is comprised of over 200 years of combined real estate expertise. Top row, from left: Joseph Shannon, Real Estate Practice Leader; Michael Mongelli; and George Livanos. Bottom row from left: Jason Borofsky, Stuart Berger, Jeff Roude, Candy Gordon-Geanoules
Parsippany, NJ 07054
AT A GLANCE
Year founded: 1965
Number of accountants involved in commercial real estate in New Jersey: 27
Areas of expertise in real estate: Tax Structuring and Compliance, Qualified Opportunity Zones, 1031 Tax-Free Exchange Planning, Incentives and Tax Credit Consulting, Feasibility Studies, Renewable Energy Advisory, Low Income and Affordable Housing, Loan and Mortgage Restructuring, Payment In Lieu of Taxes (PILOT) Audits
Sax’s Real Estate Practice works hand-in-hand with owners, developers, operators, property managers, landlords, investors, family-owned companies and privately-held funds to reach their business objectives. Those we serve are industry professionals that are not just looking for an average accountant, but rather a partner in their business lifecycle, strategic decisions and long-term goals.
Real Estate Companies should choose Sax if they want an accountant who is going to take a proactive interest in their business. If you’re looking for a firm to do your taxes or prepare your financials, then not speak again until next year, Sax isn’t the firm for you. We’re more than just a vendor to our clients, we strive to understand the goals of the business and help make recommendations that aim to exceed those goals. Whether you’re an established firm or a real estate startup, having the right advisors supporting you is critical to your success. When prospective clients truly understand and agree with that principle, they choose Sax. You should Expect More from your accounting relationship and that’s exactly what you get when you work with us!
A developer was looking to set up a Qualified Opportunity Fund (QOF) to take advantage of tax planning opportunities. Sax was chosen as the advisor based on our tax professionals demonstrating their knowledge, expertise and understanding of the complex QOF rules and regulations. Our team proved an in-depth understanding of the tax incentive program and assisted the developer and their attorneys in detailing tax deferral opportunities, entity structure and the rules and regulations that the QOF must follow pursuant to the guidelines to avoid any costly mistakes or missed opportunities. Our advisors detailed the timing of initial investor cash investments from capital gain transactions in order to benefit from the tax deferral incentives offered by investing in a QOF.
Once we began setting up the QOF, the attorneys advised the developer of various entity structures to hold the real property to be purchased in an Opportunity Zone. Sax’s advisors informed the developer that the most advantageous structure would be to create a two-tier structure in which the QOF would hold a partnership interest, and the lower-tier partnership would hold and operate the rental activity. There are several benefits to this structure, including the extended working capital safe harbor which would allow our new client to develop the property and not be subject to any costly penalties associated with the QOF rules. The developer backed our plan of action to benefit from all the Opportunity Zone incentives, which is exactly what he was looking for in an advisor.