View of the ocean and palmtrees from a beach resort

Hospitality: Tax

ArentFox Schiff’s tax attorneys possess deep experience handling tax issues involving all aspects of hotel development, operation, and disposition, as well as preparing tax provisions of joint venture operating agreements. In addition, ArentFox Schiff plans and structures for unique tax situations that can arise in the hospitality industry.

For example, our tax attorneys have:

  • Structured arrangements for hotel developers and purchasers to use taxable REIT subsidiaries and “eligible independent contractors” in order to generate qualifying REIT income.
  • Negotiated a joint venture agreement on behalf of a hotel developer to operate the joint venture to qualify as an “opportunity zone business” for a major investment fund.
  • While representing a purchaser, advised on the collapse of a historic tax credit structure entered into by the seller.
  • Structured and provided advice on the sales of hotels with the goal of the sellers to qualify for tax-free exchange treatment under Section 1031 of the federal tax code.
  • In connection with the sale by a potential seller of numerous hotels located in more than twenty states, conducted sales tax research in each state in order to qualify for a sales tax exemption on the sale of inventory and to qualify for a state’s exemption upon the sale of an entire business, and obtained tax clearance certificates from each state so as to avoid successor tax liability rules.
  • Planning around New York State, New York City, Maryland, District of Columbia, and other state rules that could trigger the real estate transfer tax upon certain sales or dispositions of a direct or indirect “controlling interest” in the entity that holds the real property.
  • Tax increment financings, special assessment district financing and special tax district financings used to support mixed use  projects that have included hotels in the District of Columbia and in Alexandria and Fredericksburg, Virginia.

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