Contributed By McGuireWoods LLP
A commonly employed method for reducing federal, state, and local taxes is utilizing tax-efficient structures. In some cases, it may be advantageous to structure a real estate sale as a sale of equity interests rather than a sale of the real estate asset itself. Given the nuances of state and local tax laws and particular deal terms, tax-efficient structures are designed for the transaction at hand. Often, such structures can achieve tax deferral and, in some cases, reduction.