Looking BEYOND cost segregation
We perform several types of surveys and reviews that optimize fixed asset taxation. These studies drastically improve cash flow by accelerating tax depreciation deductions. PTC has partnered with an affiliate firm to bring you the best possible solution to your fixed asset needs withaccess to proprietary software Fixed Asset Express. This powerful, internally developed software analyzes fixed asset registers, identifies tax-saving opportunities, and automatically quantifies benefits.
Traditional Cost Segregation
A building’s structural assets have longer depreciable lives than its non-structural components. A cost segregation study helps the taxpayer reclassify and identify exactly which assets qualify for shorter depreciation. Some of these include:
- Removable floor and wall coverings
- Process-related electrical and plumbing
- Furniture and appliances
- Land improvements
Fixed Asset Reviews
Unlike a cost segregation study, a fixed asset review evaluates all of a company’s fixed assets and identifies those qualifying for shorter depreciable lives, such as:
- Business signage, countertops and kitchen equipment
- HVAC equipment used for cooling computer equipment or perishables
- Land improvements, such as storage sheds misclassified as buildings
Capital to Expense Studies
This study is done in conjunction with a Fixed Asset Review and scours all of a company’s fixed assets for immediately expendable items, such as:
- Roofing and parking lot repairs
- Carpet replacement
- Equipment and building maintenance
- Repairs due to severe weather or accident
The Fixed Asset Express software automatically identifies assets qualifying for shorter depreciable lives or expenditures that can be immediately expensed.
Ready and Available Analysis
Often, there is a lag between when an asset is ready and available for service and when the taxpayer begins depreciation. For example, equipment requiring only nominal setup can be depreciated when purchased rather than installed. Oftentimes, a lag stems from when assets are actually placed into service to when the person with fixed asset responsibilities actually inputs them into the asset depreciation system. A ready and available analysis corrects the in-service dates of assets, which is especially beneficial when assets are moved from non-bonus to bonus depreciation years.
Bonus Depreciation Studies
Bonus depreciation has been extended through December 31, 2012. This allows taxpayers to qualify for an additional 50 percent, first-year bonus depreciation on certain types of property. This study reviews bonus depreciation policies for the current and recent past years to determine if bonus depreciation is properly taken. And since bonus depreciation is applicable to assets with a tax life of less than 20 years, there is an added incentive to have a cost segregation study or fixed asset review performed on new construction or remodeling projects.
Fixed Asset Reconciliation and Validation Services
Establishing or maintaining an accurate fixed asset record that correctly states the value of a company’s assets is challenging. We offer help to:
- Address changes to fixed asset tracking systems, policies and procedures.
- Satisfy Sarbanes-Oxley Section 404 attestation requirements.
- Address inconsistencies in fixed asset reporting resulting from mergers and acquisitions.
- Eliminate unrecorded asset retirements for personal property tax reporting.
We offer free preliminary analyses on all of our projects.