HTC realizes each person’s needs vary. Our strategies are not a one-size-fits-all solution. We take the time to understand your individual circumstance, then work alongside your accountant to create a portfolio tailored to your needs.
Your financial picture is not just dollars and cents. It’s a car payment, mortgage, student loans, daycare, dancing, baseball, retirement, vacations, etc. We are committed to going above and beyond to insure the future success of your financial well-being.
Our ultimate goal is to help you keep more of your hard-earned money. We will work day in and day out to achieve that goal.
Proven Expertise Where It Matters
Housing & Tax Consultants, LLC has been providing consulting services to Real Estate Professionals, Owners, Developers, and Managers since 1995. As projects age, they develop both opportunities and tax concerns. The aging of Owners, Developers and Managers creates other concerns and opportunities.
Many investors are looking for passive loss deductions to reduce their taxable income. Low-income housing projects can provide a steady stream of annual losses to reduce their taxable income.
We also have helped Owners deal with tax issues and have developed various strategies to defer or eliminate problems such as Negative Capital Accounts and Phantom Income. Some of these strategies include Bargain Sale, Special Allocations and Offer-in-Compromise strategies.
We have helped Developers deal with issues involving acquiring and rehabilitating projects using creative ways to incorporate tax credits, bond financing, subordinated loans and other types of financing. We have also consulted with Developers on new construction issues.
We have helped Managers acquire and sell projects using our GP Brokerage and LP Purchase programs. We also help deal with troubled projects. We have consulted with numerous managers regarding retirement issues and have helped those trying to get started in the business.
We also provide a Project Analysis Service where we help quantify the values, tax implications and other benefits of our various strategies.
We Have The Experience To Best Serve You
Housing & Tax Consultants, LLC was formed in 2004 to provide consulting services to Owners, Developers and Managers of multi-family low-income housing projects operated through Government agencies such as Housing and Urban Development (HUD) and United States Department of Agriculture Rural Housing Service(RD). These programs are considered some of the most successful government/private ventures. They’re are designed to aid low-income individuals with housing assistance. While the rents for the properties are Government financed. They are owned and operated by individuals in the private sector. This unique ownership structure allows individuals with passive/rental income to deduct the depreciation generated through the partnerships.
Although a small number of the earlier projects (those done in the 1970’s) were designed as general partnerships, the vast majority were formed as limited partnerships. For purposes of this discussion, we will concentrate on the limited partnership structure. The typical limited partnership has a general partner, who handles the day to day operations and is responsible for partnership obligations and limited partners, who are the passive investors and are not obligated on the debts (see figure 1). In many cases, the partnerships are formed as two-tier partnerships, meaning that in the place of the limited partners is another partnership (see figure 2).
Under these programs, private sector investors would provide 5% or more of the initial capital and the government would contribute the balance, either through direct loans or loan guarantees over a long period of time (typically 30-50 years). Most of these programs were put together as limited disbursement programs and are typically referred to as passive loss projects.
Based on the prevailing tax code, investors were allowed to depreciate the buildings over a shorter term than the mortgage, which allowed the limited partnership to create taxable losses. In some cases, the owners were able to utilize accelerated depreciation to amplify the losses in the early years. For the most part, these losses come from depreciation deductions. The bad news is that these same losses also produce a negative capital account.
For all practical purposes, depreciation is only a borrowed deduction. It is not a permanent deduction and must be paid back at some time. This does not mean that passive loss projects are bad or that the investors made a mistake by getting involved. In fact, the investors got significant tax advantages by deferring taxes owed to the government for fifteen to twenty years through these passive losses. The default method used by the government to “recapture” these deferred taxes is through “Phantom Income”.
Once the project’s depreciation is used up, they start to generate Phantom Income. While passive losses are incurred in the earlier years, Phantom Income exists throughout the life of the mortgage. Phantom Income only becomes noticeable once the depreciation has been exhausted and since its primary component is the principal portion of the mortgage, it tends to increase as the projects age. Hence the reference: the “Leaky Tax Shelter”.
We Are All Here To Serve You
Jordan is the CEO/CFO and senior managing member of Housing & Tax Consultants, LLC. Jordan is a senior executive with responsibility for the financial affairs of the company. She began performing secretarial functions for the company in 2008 and has since worked her way up. Jordan embodies the “Great American success story” of working your way up from the mail room. The company has sustained tremendous growth since her insertion into upper-management
Corey is the day-to-day most senior managing member of Housing & Tax Consultants, LLC. He came on board in 2014 as a project analyst. Corey was appointed COO in 2016. He oversees the HTC Team that performs functions in project analyzing, acquisitions, dispositions, portfolio valuations, re-sydication, and most importantly investor relations. The company continues to thrive under Corey’s leadership and is trending on a path of unprecedented growth and leadership in the industry.
Acquisitions and Dispositions Director
Brian has a diverse background in sales and management. As the A & D Director, he is detailed, highly organized, and energetic. He’s a Razorback at heart by way of his Arkansas upbringing, but has worked in the Tulsa area for more than 17 years. He likes to spend his free time at the Lake or on the golf course. Brian puts customer service above all else. He looks forward to working with you and your family.
Chief Technological Officer & Sales
Darwin Brewer is the Chief Technological Officer for Housing & Tax Consultants. He oversees all technological needs spanning the gamut of an animated GIF to building and implementing state of the art, high end servers, to complex network designs. Darwin originally focused on finding new innovations in modern technology for HTC. He previously worked as the IT Supervisor over the Tier 1 Team at River Spirit Casino. Also for IBM prior to that and on the IT team for the Williams Companies in Tulsa, Ok until 2015 when he took his latest position with HTC. A self-taught “tech guru,” since the early 1980’s, Darwin is known for his hands on approach to solving some of the toughest technology barriers anywhere.
Tim assumes the most enjoyable part of this great business as Chief Pilot for Housing & Tax Consultants. Flying throughout the nation as we visit our amazing clients. Meeting perspective clients face to face, with a real hand shake, is simply the personal touch worthy of a true partnership.
Tim comes from an extensive background within aviation, both as a Pilot and Mechanic. Having professionally flown for the Airlines, Major Cargo and the more eloquent Private Charter, along with flight Instruction at the University level, Tim has come to truly enjoy meeting his fantastic passengers. Safety and client satisfaction, are always first and foremost.
The Numbers Don’t Lie
According to Business Insider, the average American who makes $200,000 to $500,000 per year pays an average of $47,559 in income tax. That’s almost 24% of your hard-earned money.