Real Estate Developer Accounting from land to final sale.
For developers and builders who need project costs tracked cleanly, partners reported accurately, and lender questions answered quickly.
Real estate developer accounting serves three audiences at once: the lender funding draws, the partners expecting accurate capital accounts, and the tax return. TreeStar tracks costs by project and phase, separates hard and soft costs, and capitalizes construction-period interest and taxes as the rules generally require. We help you think through whether property is held for sale or for investment, because that question shapes how gain is taxed and which planning tools are available. When the project is ready to sell or lease, the cost records are already in order.
Where it gets complicated
- 01 Dealer or investor
Property held for sale to customers is generally treated as inventory, with ordinary income on sale and no depreciation or like-kind exchange. Holding for investment may produce a different result, and the facts, not the label, decide.
- 02 Costs that belong in basis
Interest, property taxes, and many indirect costs during construction are generally capitalized rather than deducted. Missing them overstates current deductions and understates basis when units sell.
- 03 Partner and capital structure
Development partnerships often carry preferred returns, promotes, and waterfall distributions. If the books do not track capital the way the agreement does, year-end allocations turn into a dispute.
- 04 Draw requests on deadline
Lenders want budget-to-actual reports, invoices, and lien releases before funding a draw. Disorganized cost records slow the draw, and the project along with it.
How TreeStar helps
We set up project and phase tracking for hard and soft costs, with capitalized items kept separate from period expenses.
→ controller_services Support lender drawsWe prepare budget-to-actual reports and organize the backup so draw packages are ready when the lender asks.
→ partnership_tax Structure partner reportingWe prepare partnership returns and capital account reporting that follow your operating agreement, working alongside your attorney on structure.
→ forecasting_cash_flow Forecast project cashWe map draws, equity calls, and sale or lease-up timing so cash needs are visible well before they arrive.
→What you can expect
Project costs tied to basis
Draw packages ready on request
Partner allocations that follow the agreement
Common questions
Am I a dealer or an investor?
It depends on your intent, how often you sell, how much development you do, and how the property is marketed. We review those facts with you and your attorney, because the answer affects how gain is taxed.
Do you work with our construction lender?
Yes. We prepare the financial reporting lenders typically request and organize cost documentation for draw reviews, while your team manages the lender relationship.
When can we start depreciating a rental project?
Generally when the building is placed in service, meaning ready and available for its intended use, not when construction starts. Costs before that point are tracked in the project's basis.
Need a referral?
We work alongside the attorneys, consultants, and other specialists your industry relies on. Tell us what you need and we will make an introduction.
Holds exchange proceeds and manages exchange paperwork.
→ request_referral Cost segregation providerEngineering studies that support accelerated depreciation.
→ request_referral Real estate attorneyPurchases, leases, entities, and title questions.
→ request_referral Commercial lender or mortgage brokerFinancing for acquisitions, refinances, and development.
→Real Estate insights
How a 1031 exchange works for California property owners, from the 45- and 180-day deadlines to the yearly FTB 3840 filing for out-of-state property.
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How a cost segregation study works, when it may make sense, and how 100% federal bonus depreciation and California's separate rules shape the result.
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