Learn more about our commitment to proactive, personalized service and managing your tax burden by viewing this case study. For more information on how you can benefit from cost segregation or the tangible property regulations, please contact Larry Rosenblum. Larry can be reached at 561.922.3006 or lrosenblum@cbiz.com.

1. Annual Revenue: $165 million
Industry: Real Estate
Geographic Footprint: New York City and Washington D.C. metro areas
Ownership Structure: Holding company composed of family-owned partnerships
Client Profile
Federal Tax Case Study
www.cbiz.com/federaltax
Learn more about our commitment to
proactive, personalized service and
managing your tax burden.
ServiceforYour
UniqueCircumstances
Real Estate Developer Benefits
from more than $8 million in Tax Savings
Issue
A real estate developer reached the end of its second renovation in two years. At the
same time, it was also finalizing the acquisition of a property that underwent building
updates. CBIZ MHM identified that all three projects presented opportunities to
accelerate some of the developer’s renovation expenses.
Solution
By examining the developer’s tax filings, depreciation schedules and building plans, our
team separated the assets that must be depreciated over 27.5 or 39 years as part of
the building’s costs from those that could be placed into shorter 5, 7 and 15-year lives.
One significant asset that had been depreciated over a long life qualified for a shorter
one, which allowed for a catch-up of depreciation expense that hadn’t previously been
claimed.
Our team also considered what the real estate developer renovated, which allowed
for benefits on top of those identified by the cost segregation study. The developer’s
updates to its building’s lighting, plumbing, windows and HVAC systems qualified as
repairs under the recently enacted tangible property regulations.
Outcome
The cost segregation studies and the evaluation of the tangible property regulations on
the three renovation projects allowed the developer to accelerate several development-
related expenses and significantly reduce its current year tax liability. The cumulative
present value of the tax savings to the client exceeds $8 million.
© Copyright 2016. CBIZ, Inc. NYSE Listed: CBZ. All rights reserved.
For more
information on how
you can benefit from
cost segregation
or the tangible
property regulations,
please contact Larry
Rosenblum. Larry can be reached
at 561.922.3006 or
lrosenblum@cbiz.com.
Taking full advantage of a
cost segregation study and
the benefits under the
tangible property regulations
requires careful examination
of your operations. Our
team is adept at uncovering
hidden opportunities and
implementing solutions that
lead to significant tax savings.