As real estate developers and investors do business throughout 2009, they may face complex tax issues that can strain resources and drain profits. Grant Thornton, a national accounting firm, said developers should keep in mind these tax tips that can possibly help them save money in the long run:


Color your building green. You should take advantage, where possible, of a special deduction and credit for green, i.e. environmentally friendly, buildings. 


Evaluate your capitalization methods for preconstruction costs. Are you capitalizing direct and indirect costs on property that is held for future development? Are you capitalizing property taxes incurred if it is reasonably likely that the property will be developed? If not, you may not be following the required tax rules, and the deductions you are taking could be disallowed. 


Take full advantage of depreciation. Has your company recently undertaken new construction projects, expansions or renovations? Substantial long-term savings could result from a cost segregation study, which categorizes your assets into the appropriate and most tax-advantaged depreciable lives. 


Beware of what you do with an installment note. When an installment note received in connection with a sale is disposed of, the deferred gain will be triggered. In addition, the pledging of the installment note or the transfer of the note to an LLC might be deemed a disposition. 


Consider charitable contributions of portions of land – but make sure your motive is charitable. Never contribute property without examining the alternative viewpoints the IRS could take with regard to your charitable motives. If the IRS can successfully establish that you received a benefit for the charitable contribution, your deduction may be limited or entirely disallowed.