Blog Post Public-Private Partnerships – Tax Considerations
Public-Private Partnerships – Tax Considerations
Most real estate development deals of any significant scale require some kind of government assistance in order to work. Further, deals with issues like environmental risk or other special circumstances require such assistance as well. When benefits of some kind are shifted from the public domain to private use there is a presumption of taxable income for tax purposes. There are methods to eliminate the taxable income transfer, but the deal has to be structured properly to enjoy their benefits.