Real Estate Development

Denver's real estate market has been one of the most dynamic in the country, and the developers, investors, and builders who shape Colorado's built environment face a tax landscape that is every bit as complex as their projects. From ground-up development and value-add acquisitions to land entitlement and 1031 exchange strategies, every real estate transaction has tax implications that can dramatically affect after-tax returns. Lanphier LLP serves real estate developers and investors throughout the Denver metro area and beyond with the specialized expertise this industry demands.

Real estate taxation is not an area where generalist CPAs typically excel. The interplay between depreciation strategies, passive activity rules, the qualified business income deduction, opportunity zone incentives, and state-specific tax provisions creates a web of complexity that requires focused expertise. Our team has extensive experience navigating these complexities for developers of residential, commercial, and mixed-use projects, and we bring that depth of knowledge to every client engagement.

Cost Segregation Studies

Cost segregation is one of the most powerful tax planning tools available to real estate owners and developers. By reclassifying building components from long-lived real property (depreciated over 27.5 or 39 years) to shorter-lived personal property (depreciated over 5, 7, or 15 years), a cost segregation study can dramatically accelerate depreciation deductions and improve cash flow in the early years of property ownership. Lanphier LLP works with qualified engineering firms to coordinate cost segregation studies for our clients and integrates the results into comprehensive tax planning strategies that maximize the benefit of accelerated depreciation while managing the implications for future dispositions.

1031 Exchanges and Developer Tax Strategies

Section 1031 like-kind exchanges remain one of the most effective strategies for deferring capital gains taxes on the disposition of investment real estate. We guide our clients through the identification, timeline, and compliance requirements of 1031 exchanges, and help them evaluate whether an exchange is the right strategy for a given disposition or whether other approaches -- such as installment sales, opportunity zone investments, or charitable strategies -- might produce a better after-tax result. For developers with ongoing projects, we also advise on the distinction between dealer property and investment property, the tax treatment of land held for development, and the structuring of joint ventures and syndications.

Whether you are developing along the Front Range, investing in mountain resort communities, or building a portfolio of rental properties across Colorado, Lanphier LLP brings the real estate tax expertise you need to maximize your returns and minimize your exposure.