Content: - Get the “Masterclass Playbook” on implementing enhanced Stimulus Plan offerings now - Learn how to maximize bonus depreciation, NOL carryback, immediate refunds and cash flow generator - Discover how you can monetize your apartment property rooftops with the 5G cell site installations Presenter: - Michael D’Onofrio, Managing Director, Engineered Tax Services

1. Presented by: Michael F. D’Onofrio
Specialty Tax Strategy & CARES Act Updates
Top 5 Real Estate Pro Tips!
1. Cost Segregation & Bonus Depreciation
2. Improvements & Disposition Credits
3. Energy Tax Credits & Incentives (179D/45L)
4. 5G Technology & Revenue Through the Roof!
5. Advanced Tax Exchange Strategies
(Opportunity Zones, Historic, Energy Tax Credit Investing)

2. Michael F. D’Onofrio is Managing Director of Engineered Tax Services (ETS)
the country’s largest specialty tax engineering firm focused on wealth
preservation, tax mitigation and tax credits utilizing IRS-approved strategies
and an innovative, comprehensive approach with Cost Segregation,
Renewable Energy Tax Incentives, Historic Tax Credits and new Opportunity
Zones for companies and property owners to help maximize all Federal,
State and Local incentives, credits, rebates available.
Michael lives in Charlotte, NC and works nationally delivering specialized
engineering tax studies to local and national companies, investment firms,
family offices and private equity investors. ETS has a team of over 100+
professionals in 20 offices nationally with HQ in West Palm Beach, Florida.
Your Presenter – Engineering & Specialty Tax Credit Expertise
Michael F. D’Onofrio | Managing Director
MDonofrio@EngineeredTaxServices.com
Direct: 561-762-0044
www.EngineeredTaxServices.com

3. Top 5 Real Estate Pro Tips!
Cost Seg & Bonus Depreciation
Improvements & Dispositions
Energy Tax Credits
Construction Tax Planning
Opportunity Zone & Tax Exchange

4. Federal COVID-19 Acts to Date
• Coronavirus Preparedness & Response Supplemental Appropriations Act (March 4)
– $8.3 billion emergency funding related to developing a vaccine, medical supplies, grants for
public health agencies, etc.
• Families First Coronavirus Response Act (March 18)
– $192 billion Free coronavirus testing, paid leave, enhanced unemployment insurance,
expanded food security initiatives, etc.
• Coronavirus Aid, Relief, and Economic Security Act “CARES Act” (March 26)
– $1.8 trillion Added tax provisions, small business loans, mortgage forbearance, etc.
• Paycheck Protection Program and Health Care Enhancement Act (April 24)
– $483 billion Increased Paycheck Protection Program authority, disaster loan funding and
added funds for health care response

5. Tax Provisions of CARES Act
• Business Provisions
– Employee retention tax credit: Refundable payroll tax
credit for 50% of wages (up to $10,000) paid by
employers to employees during crisis.
– Employer Payroll Tax Deferral: Delay of payment of
employer payroll taxes from enactment to 12/31/20
– Net Operating Loss (NOL) relief: 5-year carryback
• Individual Tax Assistance
– Recovery Rebates: $1,200 (single filers); $2,400
(married couples); and $500 (per child). Phases out for
single filers earning over $75,000 and married couples
earning over $150,000.

6. Tax Provisions of CARES Act
• IRS Extended tax filing relief to July 15
• 2019 tax returns with no interest or penalties
• First and second quarter estimated payments
• 1031 Like-Kind Exchanges (for deadlines
between April 1 and July 15)
• NMHC seeking additional relief
• Opportunity Zone investments (for deadlines
between April 1 and July 15)
Most Important for Real Estate…
New - Increased Loss Limitations
-Ability to use more tax losses / NOLs now!
New – 5yr Loss Carry Back Provision
Ability to go back 5yrs in tax returns and possibly
generate immediate tax $ refunds!

7. Small Business Loans
• $670 billion ($349 billion + $321 billion) for loans to small
businesses (with 500 or fewer employees, full-time/part-time)
– Up to 250% of average monthly payroll, maximum $10,000,000
– Loan is forgivable if:
• Employer keeps employees on payroll
• Over 8 weeks spends loan on payroll, rent, mortgages, utility payments
– Effective immediately through SBA lenders
– No fees, qualifying requires no collateral, no personal guarantee
and borrower certifies they are impacted by COVID-19
– Retroactive to 2/15/20
– $10 billion for emergency grants up to $10,000
• NMHC is urging Treasury / SBA to clarify that all multifamily
businesses with 500 or fewer employees qualify.
• SBA guidance is extremely unclear with respect to qualification.
• SBA can address this issue administratively, but NMHC is also
asking Congress to act should SBA not do so.

8. Federal Reserve Loans
• Federal Reserve established Main Street Lending Program
• Two facilities: Main Street New Loan Facility (MSNLF)
Main Street Expanded Loan Facility (MSELF)
• Goal to assist small and medium-sized businesses with
$600 billion in loans.
• Available to businesses with 10,000 or fewer employees or
2019 revenue of $2.5 billion or less.
• Minimum loan of $1 million.
• Loan limit lesser of $25 million or 4 times EBITDA when
added to existing but undrawn debt (MSNLF); and $150
million, 30 percent of existing but undrawn debt, or 6
times EBITDA (MSELF).
• Loans have 4-year maturity with principal and interest
deferred for one year.

9. Future Stimulus & Legislative Outlook?
• COVID-19 4.0 “Infrastructure” Package on agenda now…
• May 12 House Democrats released massive stimulus proposal dubbed Health and
Economic Recovery Omnibus Emergency Solutions Act or HEROES Act for short.
• Proposal massive not only in its estimated $3 trillion cost but also in its size, with
more than 1,800 pages included in the bill.
• Provisions calling for another round of stimulus payments, extended
unemployment benefits and other direct financial assistance.
• HEROES Act would eliminate the limitation on itemized deductions for state and
local taxes (SALT) for the 2020 and 2021 tax years.
– interesting provision revisits hard-fought issue for many high-tax states
May take longer to move bill with debates on state aid and deficit impact

10. Presented by: Michael F. D’Onofrio
PRO TIP #1
Cost Segregation & 100%
Bonus Depreciation

11. New Depreciation Rules
100% Bonus Depreciation
Section 179 Expensing Rules
✓ Cost Segregation identifies and accelerates
depreciation on 5-year and 15-year personal
property and what qualifies for Bonus
✓ Bonus Depreciation increased to 100% also applies
to Purchases of Existing Buildings in addition to
new construction and improvements
✓ Section 179 Expanded ability to expense
immediately up to $1 Million also including new
Roofs, HVAC, Security Systems

12. What is Cost Seg?
Cost Segregation Study methodically reviews all property
assets to properly identify and reclassify:
Real Property (depreciated over 27.5 or 39 years)
Personal Property (depreciated over 5 or 15 years)
- All Personal Property assets now also qualifies for new
100% Bonus Deprecation!
How is this done? Yes, the IRS allows it!
• Invoices, Drawings, Blueprints reviewed and site visit
conducted to analyze building as part of detailed
Engineering-based Cost Segregation Study
• Can also go back Retroactively 5-10+ years!
• Don’t forget Improvements and Dispositions!
• Generally Requires the filing Form 3115 is easy

13. Next Generation
Cost Segregation Studies

14. TIMING ILLUSTRATION

15. Presented by: Michael F. D’Onofrio
PRO TIP #2
Maximize Improvements
Renovations & Value-Add
Capturing Dispositions

16. What Are Dispositions?
Capturing Tax Value of a Removed Building
Asset Creates an Immediate Tax Deduction!
Typically existing improvements (Lights, HVAC, Roof, Windows,
etc) remain on long-term 27.5 or 39-year depreciation schedule
and available for Immediate Tax Write-Off!
CPAs call it (PAD) Partial Asset Disposition
ETS maximizes Improvements with a Cost Seg Study by
capturing any Abandonment and Dispositions for serious
increased cash benefits and Enhanced ROI!

17. Presented by: Michael F. D’Onofrio
PRO TIP #3
Capture All Energy
Tax Incentives & Credits
Federal - State - Local Utility

18. Energy Tax Credits
PASSED:
2019 Extender Bill
179D & 45L
Energy Tax Credits
Retroactive for all new
construction and renovations
completed 2018, 2019, 2020!

19. 179D Energy Tax Deductions
What is 179D?
• Incentivize Energy Efficient Green Building
• New Construction or Renovations
• All Commercial, Retail, Industrial Properties
• Residential and Multifamily 4+ Stories
• Up to $1.80 per sf Bonus Tax Deduction
• For new Lighting, HVAC, Roof, Windows
• Placed in Service Dates: 2006 – 2020

20. 45L Energy Tax Credit
What is 45L?
• Incentivize Energy Efficient Green Building
• New Construction or Renovations
• Residential and Multifamily 3 Stories and Less
• $2,000 Tax Credit per unit
• For new Lighting, HVAC, Roof, Windows
• Placed in Service Dates: 2006 – 2020

21. Presented by: Michael F. D’Onofrio
PRO TIP #4
Generate Addition Immediate
Revenue Through the Roof!
5G Technology Rollout

22. 5G Rooftop $ Leases
Generate Revenue Through the Roof!
- We have expertise helping clients with cell tower and leasing rooftops for new 5G Wireless
Technology as major national companies expanding aggressively right now.
- Works for many building types including multifamily apartments, office, retail, storage, warehouse,
manufacturing, distribution, hotels, resorts, senior living, single family developments, condo HOAs,
government, state, city, municipal, schools, hospitals, churches, etc.
- Leases are typically 15-20+ years in length and many can be paid upfront in a lump sum payment.
Examples of Recent Success:
-$750,000+ for Condo HOA in Palm Beach
-$1.2 Million+ for Multifamily complex in Atlanta
-$6.7 Million+ for Self-Storage property portfolio
-$500,000+ for Hotel property in Charlotte
- Initial review is at No Cost to you, we just share % of the net cash revenue you receive going
forward.
- Just need address, building and site description to begin the process.

23. Presented by: Michael F. D’Onofrio
PRO TIP #5
Understand Strategies in
New “CARES Act”
COVID-19 Stimulus Plan of 3/2020

27. Presented by: Michael F. D’Onofrio
ADVANCED TAX STRATEGIES
- Maximize Capital Stack
- Defer, Reduce, Eliminate
(Opportunity Zones & 1031 Exchanges)
- Tax Credit Investing
(Solar, Historic, OZ)

28. Find, Capture and Stack Incentives!

29. Opportunity Zone
Strategies in Many States

30. Opportunity Zone Snapshot
Investor Sells Stock or
Has A Capital Gain
Investor Places Gains into
Qualified Opportunity Fund
(QOF) within 180 Days
QOF Buys Real Estate or
Business in Qualified
Opportunity Zone
QOF Invests $ Matching
Purchase Price (-land) into
Property Development
Hold 10 Years
Pay No Capital Gains on
Acquired Property or
Business Appreciation
Taxes on Original Capital
Gains Due: Dec. 31, 2026
or Upon Sale
Hold 7 Years for 15% basis
increase (pay taxes on 85%
of capital gains)
Hold 5 Years for 10% basis
increase (pay taxes on 90%
of capital gains)
Sources: Marcus & Millichap Research Services

31. Tax Exchange Alternative Investment
Solar Project Investments:
$250 Million+ Tax Credits Available Now
➢Immediate 2020 Federal Investment Tax Credit (ITC) of 26% +
100% Bonus Depreciation in current year + Cash Flow for 6 years
➢20%+ annual IRR with ~70% of original investment returned with
tax savings in next quarterly or annual filing with tax credits +
depreciation + possible state and local cash rebates
➢CARES ACT Impact:
➢1 year Look back on Tax Credits!
➢5 year Lookback on Depreciation!
➢Buying Solar Power Plant in 2020 allows use of the Depreciation
immediately and potentially Going Back 5 Years and recover
Taxes Paid.
➢2015, 2016, 2017, 2018 and 2019 Taxes Paid can be recovered
through Amended Returns.

32. Presented by: Michael F. D’Onofrio
For Additional Information Contact:
Michael F. D’Onofrio | Managing Director
MDonofrio@EngineeredTaxServices.com
Direct: 561-762-0044
www.EngineeredTaxServices.com