Real Estate Developer – Cost Segregation

Our client negotiated the purchase of an industrial complex for approximately $6 million (excluding the value of the land). He engaged the firm to conduct a cost segregation study in order to maximize the tax depreciation deductions which, in turn, would maximize his investors’ after-tax return on the project. We met with our client and walked the property as an initial inspection then reviewed architectural and engineering drawings. After performing our costing analyses, the study resulted in approximately 20% of the purchase price being allocated to personal property with a 5 to 7 year depreciable life and another 20% of the purchase price allocable to land improvements with a 15 year depreciable life.

In total, our cost segregation study resulted in net present value savings on depreciation of almost $1 million, or net present value tax savings for investors of approximately $400,000.

Home Builder – Interest Capitalization

A regional home builder switched CPA firms to Cendrowski Selecky. Upon review of their existing tax accounting methods, we determined that the company was not maximizing its deductions based on its cost and interest capitalization methodologies. After careful research and documentation, they adopted our recommended changes which resulted in over $1 million of additional deductions.

Law Firms – Outsourcing

 A law firm with approximately 5 attorneys uses Cendrowski Selecky as their outsourced accounting department. In that capacity, we record accounts payable, issue checks, enter deposits, and assist in billing clients. We develop and generate management reports including financial statements, cash flow statements, attorney productivity, and cash requirement reports. We also act as an outside resource to the firm administrator. By outsourcing these functions, the firm has been able to concentrate its attentions on client matters and billable hours without incurring any unnecessary overhead expense for a full-time employee. This results in cost savings in excess of approximately $30,000 per year for the firm.

Investment Funds – Oversight

A family of hedge funds engaged Cendrowski Selecky to provide tax and consulting services. We provide oversight functions to their accounting department by assisting them with accounting issues and financial reporting as well as provide tax consulting and federal and multi-state tax compliance services for a variety of hedge funds and private equity funds. In addition, we perform agreed-upon procedures on behalf of the managing member so as to provide investors an additional level of assurance that the capital accounts reported by the funds are accurate. By engaging one firm to provide these necessary oversight and consulting services in a coordinated manner, the investment firm has been able to significantly reduce its professional fees while providing enhanced services and value to its investors.