Fixed Asset Depreciation Review

The purpose of a Fixed Asset Depreciation Review is to determine whether fixed assets are being properly classified and depreciated for tax purposes in accordance with IRS rules. This includes a review of capitalized costs to determine proper asset classification, depreciation methods, conventions and recovery periods. In addition, our review will identify amounts capitalized in prior years that may be treated as repairs and maintenance expenes on the current year return, assets abandoned, retired or disposed of before the beginning of the tax year, and costs to remove such assets that are no longer owned as of the beginning of the tax year. As a resuly of our review, we may recommend changes in policies and procedures for accounting for fixed assets. 

A Fixed Asset Depreciation Review through our comprehensive CapX Consulting ServicesSM Team can provide immediate tax savings and deferral opportunities by accelerating deductions utilizing changes in accounting for tangible property, including dispositions and depreciation methods. The engagement is designed to reduce federal and state tax liabilities while complying with the final tangible property regulations.

Cap X Study Features

A comprehensive CapX study will focus on evaluating the fixed assets of a company to ensure the tax regulations are being applied correctly to all assets in a company’s portfolio. A comprehensive CapX study includes the following services:

  • Improve Cash Flow – Increase current year depreciation deductions using changes in accounting for depreciation
  • Knowledge – Educate staff regarding the new tax rules for tangible property and compliance with Treasury Regulations 
  • Compliance – Review of fixed asset records, tax elections, and prior method changes for overall compliance with the tangible property regulations
  • Management – Review internal policies and procedures for compliance with the tangible property regulations and any changes that may be required
  • Retirements – Review policies and procedures for recognition of abandoned or retired assets
  • Expense vs. Capitalization – Apply the improvement rules on a test basis to capitalized assets noting whether amounts are properly capitalized as improvements or should be expensed as repairs

Capital intensive companies should consider a CapX study to accelerate deductions, increase cash flow and comply with Treasury Regulations.

Contact Us to learn more.

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.