Property Purchased in 2007 Yields $1.15 Million in Tax Savings and Sells at a 50% Premium 17 Years Later

Overview

In 2007, a client of Protax LLC acquired a warehouse for $19,700,000, just before the onset of the Great Recession. This property became part of a rapidly expanding portfolio managed by a Family Trust, with whom Protax had a well-established relationship.

Challenge

The property was purchased with long-term potential in mind, but the market downturn that followed led to a significant cash flow shortage within the first year. With property taxes being the largest single expense, reducing this burden became a critical priority for the client.

Solution

Protax LLC implemented an aggressive multi-year strategy combining formal appeals with informal requests for review. The client, familiar with Protax’s proven two-pronged approach from previous collaborations, understood that this process would require patience and persistence rather than expecting a quick resolution.

Results

The strategy delivered exceptional results. What began with a modest $30,000 refund in 2010 for the 2009 tax year evolved into a series of substantial tax savings. Over the years, the property benefited from reduced tax bills and additional refunds totaling over $150,000. From 2009 through 2022, the property’s assessed value was reduced by $110 million, resulting in total tax savings exceeding $1,150,000.

Conclusion

This case exemplifies Protax LLC’s commitment to delivering long-term value to its clients. Through strategic advocacy and persistent efforts, Protax alleviated the financial pressures associated with property ownership during a challenging economic period, ultimately helping the Family Trust achieve its goals. In 2023, the property sold for $30,500,000—a remarkable 50% increase over the original purchase price in 2007.