Repairs and Disposition Studies
New tax regulations relating to tangible property expenditures were made effective for years beginning on or after January 1, 2014. These regulations more clearly define whether an expenditure qualifies as a repair or if it must be capitalized and depreciated. The new rules also open the door for taxpayers to record and recognize write-offs for partial disposals of retired assets.
Our Repairs and Disposition Study includes a review of your expenditures, along with consultations with your staff, to identify partial replacements that qualify as repairs. When replacements must be capitalized, we will calculate a reasonable basis for the associated asset dispositions, costs of which may be currently buried in a large fixed asset number. In addition to disposed assets, we will also identify the cost basis for additional in-service assets at your request.
Our report will include:
- A summary of agreed upon procedures
- Documentation of methodologies used
- A list of expenditures qualifying as repairs and maintenance
- A list of assets identified, along with the calculated cost basis for each
Our services involve the combined efforts of our seasoned tax professionals and engineers with extensive tax expertise, industry knowledge, and accounting skills. All engagements are performed under the direct supervision of Cathy Harris, a CPA and certified member of the American Society of Cost Segregation Professionals. Cathy has been a CPA since 1997, specializing in tax and real estate regulations. She has been a Certified Cost Segregation Professional since 2010, with cost segregation experience since 2000. She has followed the changes in the tangible property regulations since 2006, when they were first proposed. In addition, Cathy has spoken at numerous local and national seminars on these regulations and has become an authority on the subject.