Weaver: Beyond the Numbers

In this episode of Weaver: Beyond the Numbers, On the Shop Floor podcast hosts Colby Horn and Kurtis Dixon examine the world of export incentives with Vince Houk, Weaver’s partner-in-charge, International Tax Services. Together they discuss how companies can leverage these benefits to reduce taxes, offset costs and optimize their financial strategies.

Key Points:

• Export incentives yield permanent tax savings

• IC-DISC and FDII offer tax advantages for international sales

• Effective use of incentives boosts financial gains

Export incentives have emerged as a pivotal tool for companies, especially those in the M&D sector selling goods outside the U.S. These incentives offer permanent tax savings and mitigate unfavorable legislative changes such as R&D capitalization. This episode explores how businesses can maximize benefits, particularly after recent tax code changes.

Vince emphasizes the importance of these incentives, specifically for maximizing benefits to offset costs. He further elaborates on the two main incentives from an export perspective, IC-DISC and FDII, explaining their nuances and potential benefits for different entities. IC-DISCs are for companies that manufacture in the U.S. and sell internationally. FDIIs are specifically for C corps that sell products outside of the U.S. to a foreign person for foreign use. With many clients engaging in significant international sales, Weaver regularly helps companies feel comfortable moving forward with these benefits.

Subscribe and listen to future episodes of Weaver: On the Shop Floor on Apple Podcasts or Spotify.

©2023

In this episode of Weaver: Beyond the Numbers, On the Shop Floor podcast, hosts Colby Horn, Kurtis Dixon, and their guest Brittany George explore the intricacies of PCI compliance and its pivotal role in the retail sector. They discuss the evolution of PCI standards, the challenges, and opportunities they present for businesses, and the broader implications for the retail industry.

Key Points:

• PCI safeguards cardholder data for retailers and service providers

• The shift to PCI version 4.0 brings new challenges and opportunities

• Non-compliance can result in severe penalties and business disruptions

PCI compliance is essential for any organization that handles cardholder data. With the impending shift from PCI version 3.2.1 to 4.0, businesses must proactively understand and adapt to the new requirements. This episode offers a comprehensive overview of PCI compliance’s importance, challenges, and the strategies companies can employ to remain compliant.

Brittany George, a partner of IT advisory services, shares, “PCI was initiated in 2004 by the major card brands. Over the decades, it has evolved in response to the changing security landscape.” The dynamic nature of PCI standards underscores the imperative for businesses to stay abreast of these changes.

Subscribe and listen to future episodes of Weaver: On the Shop Floor on Apple Podcasts or Spotify.

©2023

In this episode of Weaver: Beyond the Numbers, The Alternative Edge host Jeremy Winkler and his guest Houston Beasley of Moriah Real Estate Company discuss the intricacies of the alternative investments space, particularly as if concerns emerging managers. They delve into Houston’s journey from public accounting to the world of real estate investing, the evolution of Moriah Real Estate Company and the challenges and benefits of transitioning from a fundless sponsor to a fund structure.

Key Points:

• Launching your first structured fund brings both challenges and opportunities.

• Being "institutional ready" is crucial for attracting a broader range of investors and ensuring seamless operations.

• Effective communication and collaboration between fund managers and auditors can streamline both the audit and tax compliance processes.

Alternative investments have become a pivotal topic in the financial world. Houston Beasley’s journey from public accounting to the realm of private funds, which has included playing a critical role in launching Moriah’s first real estate fund, offers insights into the dynamic nature of this sector. The successful launches of Fund One and, subsequently, Fund Two have provided Houston and Moriah with first-hand experience of the challenges and opportunities of transitioning to a fund structure. This episode highlights the importance of both preparation for the transition in structure and selecting quality service providers who can work seamlessly together.

Houston Beasley shares, “The first time you do anything is the most complicated version of it.” He continues, “The lessons we’ve learned through Fund One launch and subsequent execution we’ve been able to carry into Fund Two." This underscores the significance of laying a foundation for future success that can be accomplished through a diligent approach to launching an initial fund and underscores the importance of selecting quality service providers, including audit and tax compliance services, to help you navigate that process.

Subscribe and listen to future episodes of Weaver: Beyond the Numbers on Apple Podcasts or Spotify. ©2023

Commercial development in Ft. Worth, Texas, is gaining momentum with a surge of projects. One company leading that charge is CHC Development, headed by co-owners Rory and Rian Maguire. This development has sparked a conversation on the shifting dynamics of the real estate industry, particularly in the medical office space and mixed-use property sectors. Since Fort Worth ranks No. 4 as the hottest market for real estate development in the last decade, this trend will positively impact the broader economic landscape, especially post-pandemic recovery efforts.

What does this rapid commercial development in Ft. Worth mean for the future, and how does CHC Development’s approach provide insights into the current real estate industry trends?

On this episode of Weaver: Beyond the Numbers Location3 podcast, hosts Howard Altshuler, Partner-in-Charge, Real Estate Services, at Weaver, and Aaron Grisz, Partner, Tax Services, at Weaver, delve into real estate development in the Ft. Worth area with Rory and Rian Maguire of CHC Development. This discussion touches on their current projects, the history of their company, and the evolving landscape of Ft. Worth, Texas.

Highlights from their conversation include the following:

• A detailed journey of Rory and Rian Maguire, from their early interest in real estate development to the establishment of CHC Development

• CHC Development's unique focus on ‘retail doctors,’ - medical practitioners who prefer visibility and proximity to neighborhoods over proximity to hospitals

• The company's shift towards redevelopment and mixed-use property projects and the challenges faced due to increasing construction costs and stagnant rents

Rory and Rian Maguire, identical twins, are the co-owners of CHC Development. The duo grew up in Denton, Texas, and pursued different career paths before coming together to establish CHC Development. Rory has a business degree and gained extensive financial expertise in private equity. At the same time, Rian, a civil engineer by training, honed his skills in the construction side of the business. Together, they have brought complementary skills, leading CHC Development’s successful journey in the real estate industry.

On Weaver: Beyond the Numbers, Location Cubed, co-hosts Howard Altshuler, partner-in-charge, Real Estate Services, and Aaron Grisz, partner, Tax Services, take the audience inside the world of self-storage property, discussing its surge, the factors influencing its attractiveness and its potential evolution.

Key Points:

· The trend of consolidation in the self-storage industry, emphasized by recent significant mergers and acquisitions

· The factors contributing to the popularity of self-storage properties, including the lower capital outlay, a consistent demand leading to growing rental rates and the relative ease of maintenance

· The growing interest in industrial outdoor storage, its challenges and potential, especially in the context of last-mile distribution centers

The boom in self-storage properties over the past decade makes it one of the more intriguing investment opportunities in the real estate market. During the last ten years, the construction of self-storage facilities rose a staggering 926 percent, reflecting a relentless accumulation of personal belongings and the continuous transformation of the real estate landscape. Occupancy rates at self-storage properties are high as consumers increasingly lean into minimalistic living and downsize their homes. As a result, we are experiencing a boom in the self-storage property market and a trend toward consolidation within the industry.

The fundamental question is: why are self-storage properties such an attractive investment now, and what does this mean for the future of the real estate sector?

Real people. Real talk. Real Estate. Location Cubed digs into the real estate industry and offers listeners market insights, economic impacts and regional predictions. In each episode, hosts Howard Altshuler and Aaron Grisz engage in conversations with industry leaders and offer thoughts on the current trends and developments of the ever-evolving real estate industry.

Subscribe and listen to future episodes of Location Cubed on Apple Podcasts or Spotify.

©️2023

In this episode of Location Cubed, host Rob Nowak, a Tax Partner with Weaver, sat down with Howard Altshuler, Weaver's Partner-in-Charge of Real Estate Services. The two discussed the impact of the supply chain on the recent spike in residential home prices.

Pre-covid, everything was moving along fairly smoothly for the supply chain; however, COVID-19 brought restrictions, lockdowns, and people hoarding things. “It kind of started to gum up the supply chain,” Altshuler said. “Traffic internationally started slowing down, and it's almost like it comes to a stop, and then it takes a while to start up.”

According to statistics, if you were to shut down the supply chain for a year, it takes about three to five years to set it back up to full capacity from both a production and logistics standpoint. “That's a lot of what we are dealing with from a standpoint of materials in any type of stuff,” Altshuler said.

Not surprisingly, this relates to the recent spike in residential home prices. “Building material prices are way higher if you can get them. That's obviously turning into higher home prices,” Altshuler said. Demand is the second component of this. Months of inventory fell to 1.4 months as active listings remained retracted while demands skyrocket, according to data from A&M’s Texas Real Estate Research Center.

The two discussed alternatives to homeownership, including the build-to-rent model being a remedy for the home supply shortages and the sustainability of positive growth rates in non-metro areas compared to negative rates for metro areas as remote work persists.

The boom in Self-storage properties over the past decade makes it one of the more intriguing investment opportunities in the real estate market. During the last ten years, the construction of self-storage facilities rose a staggering 926 percent, reflecting a relentless accumulation of personal belongings and the continuous transformation of the real estate landscape. Occupancy rates at self-storage properties are high; as consumers increasingly lean into minimalistic living and downsize their homes, the need for external storage spaces continues to rise, resulting in a boom in the self-storage property market and a trend towards consolidation within the industry.

The fundamental question is: why are self-storage properties such an attractive investment now, and what does this mean for the future of the real estate sector?

On Weaver: Beyond the Numbers, Location3, co-hosts Howard Altshuler, Partner-in-Charge, Real Estate Services, at Weaver, and Aaron Grisz, Partner, Tax Services, at Weaver, take inside this captivating world of self-storage property, discussing its surge the factors influencing its attractiveness, and its potential evolution.

The conversation in this episode revolves around three major points:

• The trend of consolidation in the self-storage industry, emphasized by recent significant mergers and acquisitions

• The factors contributing to the popularity of self-storage properties, including the lower capital outlay, a consistent demand leading to growing rental rates, and the relative ease of maintenance

• The growing interest in industrial outdoor storage, its challenges, and potential, especially in the context of last-mile distribution centers

This episode shines a light on the self-storage property market and explores how this shift may impact other aspects of the real estate sector and what people can anticipate moving forward.

Howard Altshuler is the Partner-in-Charge of Real Estate Services at Weaver. He is a renowned figure in the industry with vast experience managing various real estate and construction projects. Aaron Grisz is a Partner in Tax Services at Weaver. Grisz’s deep knowledge of the real estate tax landscape and expertise provide valuable insights into the financial aspects of the industry, from tax implications to cost management. Together, Altshuler and Grisz dissect and discuss the ins and outs of the real estate industry, providing their audience with a well-rounded understanding of various topics.

On the latest episode of Weaver: Beyond the Numbers, host Vince Houk, Partner-in-Charge of International Tax Services at Weaver, sits down with guest Josh Finfrock, Director of Transfer Pricing Services at Weaver. The two examined the impacts and implications of Brazil's recent legislative change on businesses engaged in cross-border activities.

Key Points:

• Brazil recently adopted the OECD principles for transfer pricing, aligning their regulations with international standards.
• The new transfer pricing rules in Brazil will be mandatory in 2024 but can be opted into for 2023 if companies choose to do so.
• The new rules will allow companies to have a uniform method for transfer pricing globally, eliminating mismatches and potential double taxation.

The essential shift in international taxation has emerged with Brazil's adoption of the Organisation for Economic Co-operation and Development (OECD) principles for transfer pricing. Historically, Brazil has stuck to a unique, formulaic approach to transfer pricing, often resulting in double taxation or exposure. However, with the adoption of OECD guidelines, the landscape is rapidly changing. This transition marks one of the most significant changes in the world of transfer pricing in years and holds the potential to reshape cross-border transaction dynamics.

How does Brazil's alignment with OECD principles affect businesses? What should companies do to prepare for these changes and make the most of the new landscape?

Some main points from the episode included:

• Understanding the switch from Brazil's unique formulaic approach to transfer pricing to the OECD's arm's length principle.
• The need for businesses to familiarize themselves with the new rules and implications for their tax preparations and economic analyses.
• The potential benefits of the new regulations, such as improved alignment with global transfer pricing arrangements and alleviation of double taxation.

“The benefit of this is going to be companies can ideally have a uniform method with the rest of their global transfer pricing arrangements, right, where they may not have been able to deduct royalties or service expenses. These kinds of things had mismatches with customs and income tax in Brazil locally. Hopefully, this will allow them to align that better. Those are the kind of things that we need to be thinking about with our clients as well as the operational side of it,” said Finfrock.

Josh Finfrock is a seasoned expert in Transfer Pricing, leading the practice at Weaver. His insights are grounded in years of experience navigating the complexities of international tax laws and regulations.

Subscribe and listen to future episodes of Beyond the Numbers on Apple Podcasts or Spotify.

©2023

In the latest episode of the Weaver On-Chain podcast, host Tim Savage, Partner leading Weaver’s Blockchain & Digital Assets practice at Weaver, invited Gavin Fearey, of counsel at Winstead, to discuss the intricate world of digital asset policy and regulatory updates, including:

• Detailed discussion on BlackRock's new spot ETF applications, exploring its potential impact on the investment landscape and challenges posed by the process, especially around issues like hard forks
• Insightful analysis of the ongoing legal battle between crypto exchanges and the SEC, shedding light on the consequences for the digital assets industry and how it could shape future regulatory policies
• An overview of the latest digital asset policy and regulatory updates, including new bills being proposed in Congress

Fearey, who has practiced law for 23 years, is part of Winstead's Investment Management and Private Funds Group. For more than six years, his focus has been on projects involving Bitcoin and other digital assets, and he has counseled a variety of key industry players, including investment managers, public companies, digital asset platforms, and other businesses.

Fearey is known for his deep understanding of securities and commodities law issues surrounding commodity pools, operators, trading advisors, and regulated investment advisors. He's also familiar with the industry's various regulatory oversight structures, making him a valuable contributor to the podcast.

During the episode, Savage and Fearey discuss some of the most recent updates in the digital assets industry, with particular emphasis on market players and the industry at large. They delve into topics such as the BlackRock spot ETFs, SEC lawsuits with Coinbase and Binance, among others.

One significant topic they tackle is BlackRock's new spot ETF applications. Fearey explains how BlackRock's approach differentiates itself by being a grantor trust, holding spot, and having a daily settlement on-chain of Bitcoin. Savage acknowledges that if implemented correctly, it would pave the way for other institutions and investors to invest in this market without having to navigate on-chain or exchange prices themselves.

Another highlight of the conversation is their discussion on recent lawsuits between the SEC and large crypto exchanges. Savage and Fearey discuss the tension between these giant exchanges and the regulators. Fearey describes this as an important battlefield that has the potential to greatly influence the regulatory treatment of digital assets.

Subscribe and listen to future episodes of Beyond the Numbers on Apple Podcasts or Spotify.

©2023

Shehan Chandrasekera, Head of Tax Strategy at CoinTracker, is a subject matter expert in cryptocurrency taxation. Like many who first experience crypto, Chandrasekera saw the potential of cryptoassets, but realized transacting and investing in these assets presented an enormous administrative burden. With few professionals and CPAs skilled in the industry, Shehan set out to build a solution.

“CoinTracker is a software that connects with your wallets and exchanges and automatically reconciles your capital gains and capital losses,” Shehan said. “Especially if you have multiple wallets and exchanges, it’s really hard for you to reconcile those numbers manually, and we do that automatically. You can download the tax report and share those tax reports with your accountant or file using software like TurboTax or any other tax software.”

With U.S. tax laws, tracking cryptocurrency transactions isn’t as easy as with other forms of assets, and there are no reporting requirements from service providers or cryptocurrency exchanges. Finding a solution to help maintain them and provide visibility to the taxpayer is critical. “People can get into a lot of trouble if they don’t know about the tax implications related to cryptocurrency.”

In typical stock trading, at the end of the year, people download a 1099-B form which provides a complete summary of information related to the stock purchases and sales, losses, and gains made during the year. “In the crypto space, that doesn’t happen,” says Shehan. “The typical crypto user has three-to-five wallets and exchanges. Some of these crypto exchanges don’t have any 1099 reporting obligations. Therefore, you don’t get any tax forms.” It is the individual’s responsibility to reconcile these transactions.

Tim and Shehan are hopeful that documentation processes and information provided by exchanges will become more robust soon. Per Tim, “there is talk about a new 1099 form for digital asset transactions. I think this will greatly aid in reducing administrative burden and helping taxpayers report more accurately.”