Our specialized team will conduct an in-depth analysis of your company’s fixed assets, requiring minimal support from client personnel.
The following process is provided in implementing our depreciation study:
Rev. Proc. 2002-9 along with recent tax court changes, provide taxpayers an opportunity to obtain large tax deductions over the next few years.
Property ReclassificationBusiness enterprises both invest and borrow large sums of money. The common factor in these two types of transactions is the time value of money.
Rev. Proc. 2002-9 along with the 2002 and 2003 tax acts, provide taxpayers an opportunity to obtain large tax deductions in the current tax year.
U.S. tax court decision and recent IRS procedures permit large cash tax savings opportunities.
Tremendous tax savings opportunities are often trapped inside the cost of a company’s building purchase price or construction costs. Recent changes in case law and rulings provide large opportunities to optimize depreciation for federal tax purposes.
Rev. Proc. 2002-9 allows a taxpayer to file for an AUTOMATIC change of accounting method (Form 3115) to correct under-depreciated assets and catch-up the amount of missed depreciation from when the asset was placed in service [section 481(a) adjustment]. This adjustment can be deducted in the current year.
Further benefits expand as a result of a recent US Tax Court decision in Hospital Corporation of America (HCA). In a pro-taxpayer decision, the tax court narrowed their definition of real property for federal tax purposes. Many building improvements that were once considered real property and depreciated over a 39 year life can be classified as personal property and depreciated over a 5 or 7 year life.