Accountant's opinion

An accountant's opinion refers to a generalized report giving an overview of a company's financial wellness. A CPA examines the real estate company's financial records and statements, then writes the opinion and signs it. An accountant's opinion can also be given for a specific real estate transaction, where the opinion encompasses the records surrounding the real estate deal.

I recommend: The Allbusiness.com glossary defines the accountant’s opinion.

Audit trail

An audit trail records the history for every transaction. To comply with industry standards, companies need to make audit trails of their important documents. This is especially important for CPAs and firms specializing in the real estate industry, since there are so many modifications that happen to documents along the way. Audit trail reports contain all transactions and modifications, not just the ending ones that count toward the balance sheets.

I recommend: Synergis Software makes a program simply entitled Audit Trail, which creates an electronic audit trail for your documents.

Internal Revenue Code (IRC)

The federal tax guidelines are contained in the United States' Internal Revenue Code, or IRC. The IRC contains all of the laws enacted regarding federal taxes, including those regarding estate taxes.

I recommend: The United States’ Internal Revenue Service provides more information on the IRC.

Real Estate Mortgage Investment Conduits (REMIC)

Real Estate Mortgage Investment Conduits are mortgage-backed securities. The principals and interests of many mortgages are separated into different classes, then traded as individual securities. A CPA or accounting firm can help clients decide whether or nor this type of investment is right for them.

I recommend: Fannie Mae has a page explaining the details of REMICs.

Real property

Real property refers to property that is land, property directly attached to the land, or natural resources from the land. The business of selling and buying real property comes with a lot of tax implications, especially if the real property is an investment. Ideally it's best to consult a CPA prior to any purchase or sale, so the details that will affect taxes and accounting will be known up front.

I recommend: Investopedia gives a detailed description of what is included in real property.

Real Estate Investment Trust (REIT)

Investors can join with other investors to form a trust. The trust itself does not incur income taxes, but the investors report their portions of the income gained on their own tax returns. Because each investor has his own tax liability, it's important for each investor to also have his own CPA looking out for his interests.

I recommend: The Oklahoma Society of CPAs has a glossary of accounting terms, including REITs.