Accounting Support for Realtors in Cherry Hill
Gallo and Company provides real estate accounting in Cherry Hill, Haddonfield, Mt. Laurel, and all surrounding communities. With our expansive knowledge on the unique industry of real estate, we are equipped to improve your company’s operations and develop effective financial strategies.
Capitalized Cost Processing
Property is a fixed asset, and costs associated with acquiring property must be recorded as either part of depreciation or at the time of purchase. There are times when writing an item off is more appropriate, and there are times when capitalizing on it works best. The challenge is found in knowing which choice is the right one.
Our Cherry Hill accounting firm carefully analyzes your various costs to determine whether the business’ monetary value is diminished at the time of purchase. If this is not the case, we can accurately calculate a deprecation rate to benefit your overall tax plan. We also keep pace with new depreciation laws and can accurately determine your ability to capitalize costs.
Debt Covenants and Financing
Every loan you take to construct or purchase new property comes with rules, called a debt covenant, that must be followed to maintain the agreement. It might be easy enough to follow a single financing agreement, but real estate is an industry where multiple loans can overlap. These agreements add up quickly and can start overwhelming your operations.
Gallo and Company helps clients both obtain financing and maintain their debt covenants afterward, ensuring compliance in the long-term.
Works in Progress – Construction Accounting Services
If your business operates on the construction side of the real estate industry, you face complex accounting processes for adding costs at each stage of the project. The building may not be finished, but your balance sheet will have to be completed by month end. Our firm helps you process these costs to make sure you are listing accurate expenses for a work in progress.
Section 1031 Exchange
When you finally sell a house or storefront, you normally must pay tax at the time of transaction. However, IRC Section 1031 lets you postpone the tax if you reinvest proceeds in a similar property. These exchanges of like-kind property can be a smart way to save money and encourage future profits, but it only works if the new property qualifies for the trade.
Gallo and Company helps you navigate the Section 1031 exchange process. We clear up the confusion and help you reinvest in the right property.
Contact Us Today
Gallo and Company offer real estate industry accounting support in Cherry Hill and to all nearby areas. If you need someone to analyze your property-based books, you can rely on our exhaustive knowledge about the field. For more information on how we help realtors and construction companies operate, call us and schedule your consultation today.