Partnerships for community development: properly structured deals can benefit owners, developers and neighborhoods.

EXECUTIVE SUMMARY

* CPAs can use their expertise to structure partnerships between long-term community investors and developers who want to contribute to improving markets without displacing current residents and local businesses.

* For tax purposes, forming an LLC may be the best approach to a development partnership. The partners generally benefit from reporting their share of LLC taxable income on their individual tax returns, avoiding the double taxation of a C corporation.

* An increase in equity creates a win-win situation. In this example the property owner converts his equity to cash and retains title to his business property. The developer takes advantage ...

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