Case Study: East Coast Real Estate Investment Trust reduces real estate transfer tax by 42% with BDO

East Coast Real Estate Investment Trust cuts real estate transfer tax by 42% with BDO

BDO assisted an East Coast real estate investment trust facing an unexpected real estate transfer tax challenge. During a major REIT acquisition, a title insurance company demanded a $1.2 million escrow for potential taxes in three states, based on an analysis the client suspected was incorrect.

BDO provided specialized consulting and compliance services. Their team analyzed the controlling interest transfer tax provisions and determined the tax was not applicable or was exempt in two of the three states. This allowed BDO to secure a 42% reduction, decreasing the client's escrow and final tax payment by approximately $700,000.