Issue
As a nationally active real estate acquisition and development company structured as a REIT, the client needed a tax strategy that could support both its existing portfolio and continued growth. With ongoing property acquisition activity, the company sought opportunities to improve cash flow, optimize depreciation benefits, and reduce income tax exposure in a way that could be applied consistently across future transactions.
Solution
To help the client create a scalable tax planning approach across its portfolio, CBIZ evaluated how cost segregation studies could support existing assets and future acquisitions. Rather than approaching each property in isolation, CBIZ developed a standardized cost segregation strategy for existing and future acquisitions. This included establishing a consistent fee structure based on property type and size, helping the client identify depreciation opportunities more efficiently while creating a scalable framework for future planning.
Outcome
Through this strategy, the client is expected to generate approximately $5 million in tax savings across current and future acquisitions. The approach also gives the client a repeatable framework to evaluate future properties, improve cash flow, and enable more informed acquisition decisions.
| Company Information | |
|---|---|
| Industry | Real Estate Acquisition/Development |
| Entity Type | Corporation |
| Ownership Structure | REIT |
| Geographic Footprint | National |
| Annual Revenue | Approx $70M in Rental Income |
© Copyright CBIZ, Inc. All rights reserved. Use of the material contained herein without the express written consent of the firms is prohibited by law. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. Material contained in this publication is informational and promotional in nature and not intended to be specific financial, tax or consulting advice. Readers are advised to seek professional consultation regarding circumstances affecting their organization.
“CBIZ” is the brand name under which CBIZ CPAs P.C. and CBIZ, Inc. and its subsidiaries, including CBIZ Advisors, LLC, provide professional services. CBIZ CPAs P.C. and CBIZ, Inc. (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. CBIZ CPAs P.C. is a licensed independent CPA firm that provides attest services to its clients. CBIZ, Inc. and its subsidiary entities provide tax, advisory, and consulting services to their clients. CBIZ, Inc. and its subsidiary entities are not licensed CPA firms and, therefore, cannot provide attest services.
