CapX | Capitalization or Expense Consulting

Your clients rely on you for tax-saving ideas. The comprehensive tangible property regulations effective beginning with 2014 tax years have created unprecedented opportunities for commercial property owners to increase their current deductions, by segregating construction costs between capital improvements and deductible repairs, maintenance, and removal costs. In addition, commercial property owners can reclassify amounts capitalized in prior years as repairs and maintenance expense and claim the tax benefit in the current tax year. Finally, commercial property owners can claim an abandonment loss for the remaining tax basis in building property disposed of in connection with capital improvements. 

Performing a fixed asset depreciation review now will allow your clients to claim catch-up adjustments for amounts that should have been expensed as repairs and maintenance or separate asset dispositions in a prior year. The IRS will commence audits of tangible property beginning with the 2014 tax year now that it has released the IRS Audit Techniques Guide on Capitalization of Tangible Property. This means that your clients should conduct a review now to bring them into compliance and take advantage of the value of current deductions and accelerated depreciation. 

CSP360’s team of tax and accounting method specialists and cost segregation engineers have conducted extensive research on the 263(a) tangible property regulations as well the landmark court cases that the regulations are based on. By tapping into our comprehensive CapX Consulting Services™, you will take advantage of this vast reservoir of knowledge to bring your commercial property clients into compliance with the new regulations and optimize their tax savings.

Through our CapX Consulting Services™ we help your clients:

  • Identify and segregate the cost of structural components of buildings that were disposed of in the current year 
  • Identify past or current expenditures that can be expensed as repairs and maintenance 
  • Review results of a prior year cost segregation studies to identify dispositions or abandonment of tangible property
  • Identify the cost of removal of a structural component not subject to capitalization under 263(a)
  • Segregate the costs of the eight building systems for purposes of applying the improvement and disposition rules under the final regulations

Contact CSP360 to schedule a consultation on the benefits of conducting a CapX study for your commercial property clients

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ABOUT US: CSP360, headquartered in Buffalo, New York, is one of the nation's leading providers of cost segregation and tax minimization services including tangible property regulation compliance, IRC 179D/45L energy efficiency studies, research tax credits, 263(a) maintenance repairs, fixed asset depreciation review and 179d analysis/45L to cpa, accounting and chartered accounting firms across the United States. Through our CPA Partnership Program we provide services to their qualified clients who have constructed, bought, expanded or remodeled real estate. We are affiliated with Freed Maxick CPAs, P.C., a Top 100 Firm in the United States, and have been providing cost segregation studies for over twenty years.