Unlock Commercial Real Estate Tax Benefits With a Guided, Engineering-Based Approach
We serve as your single point of contact for uncovering overlooked financial opportunities — anchored by cost segregation and Section 263A expensing, and extended through IEEPA tariff recovery filing and funding, R&D tax credits, and other strategies designed to improve cash flow.
Schedule a ReviewWhat We Offer: Strategic Tax Benefits, Cash Recovery, and Building-Smart Solutions
We help businesses, owners, developers, and contractors identify legitimate opportunities to improve cash flow, reduce tax drag, recover overlooked dollars, and make smarter decisions during construction and operations. Some offerings rely on engineering-based analysis, some on legal and records review, and some on early design and product strategy—but all are coordinated through one clear point of contact.
Cost Segregation
Cost segregation accelerates depreciation by reclassifying specific building components into shorter recovery periods under IRS guidelines. Through engineering-based analysis and detailed documentation, eligible property elements are identified and properly categorized. This often results in significant front-loaded tax deductions while remaining defensible under audit.
Cost segregation studies vary significantly in methodology, documentation, and audit defensibility. There are six primary approaches:
Detailed Engineering
This method uses actual cost records and on-site evaluation and is the most methodical and accurate approach. This is the type of detailed engineering study we coordinate for our clients through established national engineering firms. The property is physically reviewed, photographed, and fully documented. In an IRS audit, one of the first questions often asked is whether a site inspection was conducted to document the structure.
Detailed Engineering Cost Estimate
Similar to the method above, but estimated costs are used when actual cost records are unavailable. Many firms using this approach do not conduct a full site visit or photographic documentation.
Survey Method
Contractors are contacted through surveys or correspondence to provide cost breakdowns for components of the project.
Residual Estimation
An abbreviated method where only short-life assets (typically 5- or 7-year property) are identified, and remaining costs are allocated residually.
Sampling Method
Used for multiple facilities with nearly identical construction (such as certain fast-food or retail chains), where a representative facility is analyzed and applied across similar properties.
Rule of Thumb
A simplified approach based largely on preparer experience and industry averages, often with limited documentation.
Capital Cost Expensing under Section 263A
Section 263A allows qualifying taxpayers to expense certain construction-related and indirect costs that would otherwise be capitalized. When properly applied, this exception can unlock immediate deductions tied to development and improvement activities. In many cases, strategic 263A application works in tandem with cost segregation for enhanced impact.
- Owners may expense qualifying construction-related and indirect costs prior to receiving a certificate of occupancy, year-to-year, until project completion.
- Cost segregation studies are typically performed after a certificate of occupancy is issued.
- In many cases, strategic Section 263A application works in tandem with cost segregation for enhanced impact.
Tariff Recovery
With the federal government's launch of the IEEPA Tariff Refund Portal, U.S. companies that paid tariffs on imported goods now have a defined path to recover qualifying overpayments. This is not a theoretical opportunity—it’s an active process now underway.
Companies with import activity over the past several years may be eligible to reclaim substantial capital, depending on how those tariffs were assessed and whether they fall within the scope of recently challenged or invalidated measures.
Through coordination with experienced tariff recovery specialists, import records can be reviewed and claims prepared to pursue refunds through the appropriate federal channels.
The window to act is expected to be limited as guidance evolves. Early evaluation helps ensure eligibility is preserved and opportunities are not missed.
Research & Development (R&D) Tax Credit
The R&D tax credit applies to businesses engaged in process improvement, design innovation, technical problem-solving, or construction methodology development. Many commercial real estate owners and contractors qualify without realizing it. Proper documentation and qualification analysis are essential to support defensibility and long-term benefit. When qualification criteria continue to be met, R&D tax credits may provide recurring tax benefits in subsequent years.
Additional Programs
Section 179D
Section 179D provides deductions for energy-efficient improvements made to qualifying commercial properties. While eligibility depends on project timing and compliance standards, qualifying projects may benefit from engineering-based certification to substantiate the deduction. Certain provisions are scheduled to phase out for future construction projects, making early evaluation important.
GreenZip® Tape Strategy
GreenZip® Tape is a construction product used in certain non-load bearing interior wall assemblies that, when incorporated and documented properly, may allow those assemblies to qualify for shorter depreciable lives under applicable tax guidance. When evaluated early in the design and construction process, this strategy can enhance accelerated depreciation opportunities for qualifying projects.
When used in qualifying non-load bearing interior wall assemblies, Green Zip® Tape may allow those assemblies to be treated as shorter-life property under applicable tax guidance, rather than defaulting to 27.5-year (residential) or 39-year (commercial) real property classifications.
When properly incorporated during construction and supported by engineering-based analysis and documentation, certain interior components may qualify for 5-year treatment as personal property. This reclassification can enhance accelerated depreciation opportunities when coordinated with a detailed cost segregation study.
Because this strategy depends on construction method, documentation, and proper tax analysis, early coordination between construction planning, engineering review, and tax strategy is essential.
This approach is generally most beneficial for larger construction and significant remodel projects where interior wall assemblies represent a meaningful portion of project cost.
How It Works
Not every offering follows the exact same path. Cost segregation, Section 263A, R&D, and 179D may involve engineering or technical analysis. Tariff recovery depends on importer records, legal posture, and filing pathways. Green Zip® Tape works best when evaluated early in design and construction. But the engagement framework is consistent.
Discovery Call
We review your business, property, project, or import profile to identify where meaningful opportunity may exist.
Fit & Opportunity Screening
We determine which strategies may apply, what records are needed, and whether the opportunity is worth pursuing.
Specialist Coordination
Where needed, we coordinate with established engineering, technical, legal, or product-aligned partners to move the work forward properly.
Documentation, Filing Path, or Implementation
Depending on the service, the result may be a formal study, a filing strategy, a credit analysis, or a construction-stage implementation plan.
Who We Are
Chair 12 Strategies was built around a simple idea: most businesses don’t need more options—they need clarity on which ones actually matter. We work with owners, operators, and advisors to identify where real financial opportunity exists across tax strategy, recovery programs, and building decisions—and then coordinate what it takes to capture it.
Each engagement is evaluated individually to determine fit, documentation requirements, and the right technical path. Some opportunities are engineering-driven. Some are record-driven. Some begin before construction is complete. We coordinate the moving parts and keep the process grounded in a conservative, documentation-first approach.
The principles behind our work are outlined in The Hidden Windfall, built around three core ideas that guide every opportunity we evaluate.
While the strategies we evaluate may vary—from tax optimization to recovery programs and building decisions—these principles remain constant.
Your Dedicated Point of Contact
Principal
Randal Franzen
Randal leads client relationships and strategic direction. With a background spanning commercial real estate, tax strategy, and complex project coordination, he focuses on helping clients understand what's worth pursuing—and what isn't.
Clients work directly with Randal from initial review through final documentation. His focus is clarity, defensibility, and disciplined execution.
Includes cost segregation and R&D tax savings calculators
Use Tax Savings Calculators →If there's something worth pursuing, we'll find it. If there isn't, you'll know that too.
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Strategy & Operations
Lynn Abel
Strategy & Operations
Lynn oversees operations, marketing, and engagement coordination to ensure projects move efficiently and communications remain clear throughout the process. As co-author of The Hidden Windfall, she supports the firm's structured 3T framework.
Together, we provide a single point of clarity across opportunities that are often fragmented, overlooked, or misunderstood—so nothing worth pursuing gets missed.
Ready to See What You May Be Missing?
There is no cost to review the numbers. Schedule a structured evaluation with Randal to identify what opportunities may apply.
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