In fact, according to a recent study, regulation “imposed by all levels of government accounts for an average of 40.6 % of development costs (NAHB, O’Leary).”

In situations like this, it’s definitely worth considering a cost segregation study.

On average, 20% to 40% of those components fall into tax categories that can be written off much quicker than the building structure.A Cost Segregation study dissects the construction cost or purchase price of the property that would otherwise be depreciated over 27.5 or 39 years.

I have not heard of the IRS challenging, much less overturning a professionally done cost segregation study. 

I appreciate everyone's feedback but I am still curious if there are any professional PM's with case studies.

There have been studies on this.

Are you utilizing any cost segregation studies/real estate professional status to lower the taxable income?

Market Research: Study the local market trends, job growth, and property appreciation to ensure long-term profitability.

(ICF Global Coaching Study (2019): Rates and trends for coaching in high-net-worth areas.)

Study the market.