Fixed Asset Depreciation Review
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
- Specialized plumbing or flooring
- 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 scours all of a company’s fixed assets for immediately expensable items, such as:
- Roofing and parking lot repairs
- Carpet replacement
- Equipment and building maintenance
- Repairs due to severe weather or accident
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. 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 applies to certain assets placed in service from January 1, 2009 through December 31, 2010. This allows taxpayers to qualify for an additional 50 percent, first-year bonus depreciation on certain types of property. 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.