2024 AICPA & CIMA Construction & Real Estate Conference

This course offers an exploration of internal controls specifically tailored to the construction industry. Participants will learn about the elements of internal controls, as well as internal control systems, to mitigate risks. The course will cover key areas such as estimating and bidding, project cost management, contract billings, and examples of fraud schemes. Attendees will gain practical insights into ensuring compliance and safeguarding assets to enhance financial reporting accuracy, all within the context of the construction environment.

This course will be an overview of state income tax basics to apply to construction contractors, real estate developers and professional service entities. Concepts that will be covered will include:

• State Nexus Activities, standards, and rules
• State Apportionment, Factors, and methods
• Federal vs. State Differences, Conformity
• Passthrough entity filing requirements – Composite, Withholding, PET

Join us for an insightful panel discussion exploring the dynamic world of emerging fund managers in real estate. As the industry evolves, new managers are carving out niches and leveraging innovative investment strategies to drive growth and raise capital in the current competitive market. The panelists will delve into the opportunities and challenges faced by emerging fund managers in the real estate industry. Topics will include access to capital, establishing a record, navigating regulatory landscapes, and the role of technology and data in shaping investment strategies. The discussion will provide valuable perspectives on key factors and solutions to succeed as an emerging fund manager in today’s real estate environment.

The session will provide an overview of U.S. real estate investment fund accounting practices, including details around qualifying as an investment company, different reporting models that exist, and fair value disclosures which are common for these entities. The session will also introduce incentive fees and allocations.

This session will cover the current state of the lifetime exemption and how to transfer assets effectively and strategically to future generations in light of the pending sunset of the current estate and gift tax exemptions.

Baby boomers are increasingly searching for a tax-efficient way to exit or monetize their equity in construction companies at an attractive transaction amount. This presentation shows how an Employee Stock Ownership Plan (ESOP) can provide liquidity to selling shareholders in a tax-advantaged environment, all while providing an attractive retention tool for employees and creating a lasting legacy for selling shareholders. In addition, we will discuss the need for a comprehensive examination of the company’s financial and organizational readiness, as well as an assessment of the potential impact on all stakeholders involved, prior to making the decision to sell a stake of your company to an ESOP. Finally, we will lay out the “roadmap” to progress from the feasibility stage to closing an ESOP transaction.

With advances in technology in all aspects of our lives, assurance professionals are not immune from change in how they deliver services to their clients. This session will explore the audit process and how automation tools can be used to increase efficiency and accuracy of audit procedures. While some of these tools are industry agnostic, others can be tailored for the construction industry. Join us as we discuss automation of the audit process from the perspective of those who are on the front lines with clients each day.

The Inflation Reduction Act (IRA) created game-changing opportunities for many projects to capitalize on the largest energy investment in U.S. history through tax credits. Complying with prevailing wage and apprenticeship (PW&A) under IRA can significantly enhance credit value by five times and, therefore, many project owners are asking contractors to comply. It took nearly two years for the PW&A requirement final rule, leaving many contractors in a state of flux as project owners are pushing penalties and/or loss of credit to contractors. Yet, this is also a perfect opportunity to take advantage of the $270 billion of tax credits and incentives in the longest-running U.S. energy policy. Unfortunately, being “in accordance with” the Davis-Bacon Act, while not a covered act, has created significant confusion for both credit seekers and contractors. This is tax credit compliance for the IRS and there are record-keeping requirements for an extended period. Baker Tilly will review fundamentals of the IRA base and adder credits, including domestic content, energy community, and prevailing wage. This session will review the final PW&A rule, explain recordkeeping, and provide recommendations on how contractors can help their projects comply.

Session will provide an overview of waterfalls in a closed end fund structure. It will include an outline of the basic components, framework and structure of various types of waterfalls. It will include detailed examples and sample calculations of waterfalls. It will also evaluate different types of waterfall structures and discuss recent legislation and regulatory pronouncements and their impact on waterfalls and performance returns.

Discuss Federal tax credits, incentives and deductions available to those in the construction and real estate industry.

This session will help participants identify areas within financial statements for construction contractors that present risks from a cash flow and cash management perspective. This session will also discuss best practices for effective cash management.

This update will cover accounting and auditing standards relevant to the construction industry effective for 2024 year-ends.

What tax methods and elections are available, and which might add value to your clients?

It has been a challenging year for valuations—both for professional appraisers and internal fund valuation preparers. This session will cover the current state of the capital markets, valuation challenges in a slow-deal environment, and what distressed sales can tell us (or not) about today’s markets.

The session will focus on certain aspects of basis step up and gain recognition arising from the 10% and 5% exclusions on gain deferred from the original investment in a Qualified Opportunity Fund, the end of the deferral period on December 31,2026 and from certain inclusion events. Additionally we will discuss the elective basis step up elections for investments held at least 10 years. The program will include an analysis of the consequence of failed or delayed projects and the impact of voluntary decertification. Finally, we will discuss the prospect for legislation extending the OZ program as part of a reconciliation bill in the next Congress.