Real Estate - Specialty Tax Advisors

The Real Estate sector involves large capital investment, environmental sustainability, energy efficiency, and depreciation benefits, all areas that are candidates for tax incentives.

Ideal Candidates:

Real estate developers (residential or commercial)
Multifamily and build-to-rent operators
Retail and industrial property owners
Real estate investment firms, REITs, and syndicators
Green building and modular construction firms

Here’s an overview of how Real Estate owners can benefit.

Cost Segregation

The most powerful tax tool for real estate owners:

Accelerates depreciation by separating building components (e.g., carpet, lighting, electrical, site improvements) into 5-, 7-, or 15-year categories
Applies to multifamily, commercial, retail, industrial, mixed-use, and hospitality assets

Benefit: Up to 30–50% of a building’s cost reclassified for front-loaded deductions—often producing six-figure year-one savings.

45L Tax Credit

For developers of multifamily or single-family housing:

Up to $5,000 per unit for homes that meet ENERGY STAR or Zero Energy Ready Home standards
Applies to apartments, condos, townhomes, and single-family homes sold or leased

Benefit: Reduces tax liability and enhances green ROI for residential developers.

179D Tax Deduction

For commercial and multifamily properties:

Up to $5.00 per square foot for energy-efficient HVAC, lighting, or building envelope systems
Applies to new construction, major renovations, or retrofits

Benefit: Immediate deduction for energy-efficient design or upgrades—can also benefit architects, engineers, and design-build teams.

What Services are Included?

Opportunity Zone Investment Incentives

For real estate projects located in designated Opportunity Zones:

Deferral of capital gains from prior investments
Potential tax-free growth of new real estate investments held for 10+ years

Benefit: Long-term tax exemption on appreciation, plus interim tax deferral.

Section 263A (Uniform Capitalization Rules) & Fixed Asset Reviews

Helps real estate owners and developers:

Correctly classify capital vs. expense items
Identify previously capitalized assets eligible for immediate write-off

Benefit: Increases current deductions and captures missed opportunities from prior years via Section 481(a) adjustment.

IC-DISC (Interest Charge – Domestic International Sales Corporation)

Export Tax Incentive for manufacturers or exporters of building components (e.g., modular systems, cabinetry, windows):

Allows a portion of profits to be taxed at dividend rates instead of ordinary income

Benefit: 10–15% permanent tax savings on qualifying export income.

Form 3115

A Form 3115 - Application for Change in Accounting Method, allows businesses to request approval from the IRS to change their accounting method. This form might be required when making changes to claim various tax credits.

Changing Depreciation Method
Inventory Method
Accounting for Repairs vs. Capital Improvements

Benefit: Tax relief through audit protection, improved financial reporting accuracy, potential tax benefits, and compliance with IRS Regulations.

Payroll Tax Reduction Strategy

Companies with W2 employees will qualify for this tax credit program.

Proven ROI with significant Payroll Tax savings recognized on first payroll cycle
Eligible employees see an increase in net take-home pay
Zero upfront or out-of-pocket cost to employer or employee
Attract and retain top talent
Audit compliance

Benefits: Employer FICA Tax Savings is $56.80 per month or $681.60 per year per eligible employee. Employee FICA/State/Federal Tax Savings includes an approximate 3-4% increase in monthly net take-home pay.

Other Specialty Tax Advisors services offer various benefits to the Aerospace Industry in addition to the tax credits and incentives mentioned above: