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

An East Coast real estate investment trust was closing a large acquisition and faced a challenge when its title insurance company required a $1.2 million escrow for potential real estate transfer taxes in three states. The REIT was unaware of the tax implications and needed to understand its obligations. They engaged BDO for its real estate transfer tax consulting services to analyze the situation.

BDO analyzed the controlling interest transfer tax provisions and determined the tax was not applicable in two of the three states. The vendor provided compliance services to claim an applicable exemption in one jurisdiction. As a result, BDO successfully reduced the client's escrow amount and ultimate tax payment by approximately $700,000, which represented a significant 42% decrease in the real estate transfer tax owed.