Real Estate
Tax, audit, and advisory for owners, developers, and investors — structured to protect cash flow and maximize after-tax returns.
Overview
Real estate is a tax-driven business, and small structural choices compound into large after-tax differences over a hold. Pease Bell works with owners, developers, funds, and investors to structure entities, time transactions, and capture every available deduction — from cost segregation to 1031 exchanges. From our Cleveland, Ohio headquarters we serve real estate clients in all 50 states, pairing full-service depth with a boutique touch. Whether you are underwriting a first acquisition, closing a development deal, refinancing under a HUD program, or preparing lender-facing financial statements, we bring practical, deal-level experience to every stage of the transaction and the hold.
How we help real estate owners & investors
Integrated tax, audit, and advisory support built around how real estate deals actually get done.
1031 Exchange Planning
We structure like-kind exchanges to defer capital gains, mapping the 45-day identification and 180-day closing windows, coordinating qualified intermediaries, and modeling replacement-property options before you close.
Cost Segregation
We accelerate depreciation by reclassifying building components into shorter recovery periods, coordinate engineering-based studies, and pair the results with bonus depreciation to front-load deductions and improve early-year cash flow.
Partnership & Entity Structuring
We design LLC and partnership structures, model distribution waterfalls and special allocations, and align entity choice with investor, developer, and fund objectives so the tax outcome matches the deal economics.
Depreciation & Passive Activity Strategy
We plan depreciation elections and apply the passive activity and real estate professional rules so losses are used where they belong, avoiding surprises that strand deductions or trigger unexpected tax.
HUD & Affordable Housing
We handle HUD-financed and affordable housing engagements, including Section 232 compliance, LIHTC cost certification, and the audit and reporting requirements that come with federally assisted properties.
Audit, Assurance & Lender-Facing Reporting
We deliver audits, reviews, and financial statements that satisfy lenders, investors, and regulators, giving you credible reporting to support financing, refinancing, and equity relationships.
Contact Us
Tell us about your portfolio and a member of our real estate team will be in touch.
The pressures we help you manage
Real estate returns are made or lost at the margins — in timing, entity choice, and how carefully deductions are captured. These are the recurring pressure points we help clients work through.
- ✓Deferring gain on a sale — hitting the 45- and 180-day 1031 windows and coordinating a qualified intermediary before the clock starts.
- ✓Front-loading depreciation — using cost segregation and bonus depreciation to pull deductions forward and improve early cash flow.
- ✓Structuring the deal — choosing the right entity and modeling waterfalls and special allocations so investor economics and tax results line up.
- ✓Using losses you have earned — navigating passive activity limits and the real estate professional rules so deductions are not stranded.
- ✓Meeting lender and program requirements — producing HUD, LIHTC, and lender-facing audits and financial statements on schedule.
Why real estate clients choose Pease Bell
Deal-cycle experience
We work across acquisition, development, refinancing, and disposition, so our advice reflects how each stage affects the next — not just a single return filed after the fact.
Tax and audit under one roof
Cost segregation, 1031 planning, partnership tax, and lender-facing audits sit in one firm, so structuring decisions and reporting stay coordinated instead of siloed across providers.
Full service, boutique touch
A Top 200 firm with 150+ professionals serving clients in all 50 states, delivered with the direct partner access and responsiveness of a boutique practice.
Real Estate Team
Charles Federanich, CPA, MT, AEP
Senior Advisor
Kathleen Moran, CPA, MBA, MT
Partner
Joe Rokas, CPA
Director
Yisroel Segal, CPA
Partner
Featured Insights
Real estate insights from our team
Practical guidance on the tax and reporting issues that shape real estate returns.
- 1031 Exchanges
1031 exchange rules: timelines, traps, and how to qualifyCore reference for like-kind exchange timing and qualification.
- Depreciation
Bonus depreciation 2025: 100% write-off permanently restoredPairs directly with cost segregation strategy.
- Opportunity Zones
Opportunity zone tax benefits: a 2025 investor guideInvestor-facing OZ overview.
- Opportunity Zones
Opportunity zones under new law: from the TCJA to the OBBBALegislative update on OZ rules.
- Passive Activity
Real estate professional tax benefits explainedExplains the real estate professional loss rules.
- Affordable Housing
LIHTC cost certification: what CPAs verify and the new 25% testFor LIHTC developers and syndicators.
- HUD Financing
HUD Section 232: post-closing compliance guidePost-closing compliance for HUD-financed properties.
Real estate accounting FAQs
What is a 1031 like-kind exchange and how much time do I have?
A 1031 exchange lets you defer capital gains tax when you sell investment or business real property and reinvest in like-kind replacement property. You have 45 days from the sale to identify replacement property and 180 days to close. A qualified intermediary must hold the proceeds, so the structure needs to be set up before you sell — not after.
What is a cost segregation study and why does it matter?
A cost segregation study reclassifies parts of a building into shorter depreciation lives, letting you deduct them faster. Instead of depreciating an entire property over decades, components like fixtures, certain finishes, and land improvements can be written off over 5, 7, or 15 years. Combined with bonus depreciation, this front-loads deductions and improves cash flow in the early years of ownership.
How should I structure entities for a real estate investment or fund?
Most real estate is held in LLCs or partnerships because they offer liability protection and flexible, pass-through tax treatment. The right structure depends on your investors, financing, and exit plans, and on how distributions and allocations are designed. We model waterfalls and special allocations so the entity structure supports the deal economics rather than working against them.
What are the passive activity and real estate professional rules?
Rental real estate is generally treated as a passive activity, so losses can usually only offset passive income. If you qualify as a real estate professional under the IRS tests, those losses can offset other income instead. Qualifying depends on hours worked and material participation, and the tests are strict — documentation matters, so we help clients plan and substantiate their position.
Do you handle HUD-financed and affordable housing properties?
Yes. We work with HUD-financed and affordable housing properties, including Section 232 compliance and LIHTC cost certification. These programs carry specific audit, reporting, and compliance requirements tied to the financing. We prepare the audits and financial statements lenders and program administrators expect, and help owners stay compliant through the post-closing life of the loan.
Do you work with real estate clients outside Ohio?
Yes. Pease Bell is headquartered in Cleveland, Ohio and serves real estate clients in all 50 states. As a Top 200 U.S. CPA firm with 150+ professionals, we support owners, developers, and investors nationwide across acquisition, development, refinancing, and disposition — while keeping the direct partner access of a boutique practice.