cpa recommendation in nj
Looking for a cpa familiar with 1031 exchange and motel business in New Jersey.
Any recommendations are appreciated.
Thank you
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- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Sara Delilah, If you're looking to do a 1031 exchange on a motel property then you're going to need both a QI and an accountant. The QI has to be an unrelated 3rd party whose only role is the performance of the 1031 exchange. The accountant is going to be so important not just for the reporting on your tax returns. But also for determining valuations and aiding in contract negotiations.
A sale of a business asset (motels included with even more complexity) is going to be made up of basically 3 categories - Real estate, FFE (furnishings fixtures and equipment) and "good will" (the amount above the value of the real estate and FFE that the buyer is willing to pay.
Real estate is the only part of the calculation that can be tax deferred. So the seller will. want to have the greatest amount of value assigned to real estate. The buyer will probably disagree since they would like the accelerated depreciation of FFE assets. And this is the dance your acct needs to excel in - helping you get the highest value assigned for the real estate portion while making sure that FFE is sold at basis or lower to avoid a depreciation recapture issue. And making Good will the least of all.
- Dave Foster
