Taft attorneys B. Joseph Krabacher and Isaac Lodico co-authored an article published in the third-quarter 2026 issue of Real Estate Taxation, a Thomson Reuters publication. The article, “My Building Has Every (In)convenience: The Tax Trap of Condo Redevelopment,” was written alongside Taft colleague Amy Zhang.

The article examines the complex tax challenges associated with redeveloping aging condominium properties, including demolition-related tax restrictions, built-in capital gains, and the limitations of tax-deferral provisions under Sections 1031 and 121 of the Internal Revenue Code. The authors also explore how structuring redevelopment through a limited liability company taxed as a partnership may help coordinate financing, construction, and ownership transitions while potentially deferring taxable gains under Section 721. The article emphasizes the importance of careful tax planning to avoid unexpected liabilities and facilitate successful redevelopment projects.

Read the full article HERE.

Krabacher is a partner in Taft’s Real Estate group with more than 40 years of experience. Considered by his clients, contemporaries, and counterparties to be one of the top legal talents in real estate, business, and tax transactions, Krabacher brings an interdisciplinary approach to his representation of national developers and builders, as well as lenders, individual investors, owners, and family offices.

Lodico is a member of Taft’s Mergers and Acquisitions group, where he draws on his extensive knowledge of the tax code to assist clients with their business needs. His experience includes corporate taxation, consolidated returns, tax procedure, natural resources taxation, property taxation, fiduciary income taxation, and tax research.