Section 263(A) inventory allocations are an extremely complex and confusing section of the tax code that, unfortunately, has huge implications for builders and developers. An allocation off by just a few percentage points (for companies with multimillion dollar inventories) can result in under or over reporting of taxable income by hundreds of thousands of dollars. This means that you are paying way too much in taxes or facing huge potential penalties! Our expertise in this area can bring peace of mind knowing that you are paying only what is required.

New Revenue Procedures and tax court rulings for tax free exchanges of like-kind property continue to make this high-risk, high-reward transaction an area that requires true expertise. New safe harbor rules are issued that in many ways just complicate matters all the more. Be careful!