Services

Fixed Asset Study (Look-Back)

There has been a plethora of changes around fixed asset depreciation in the recent years. These changes have made it nearly impossible for taxpayers to keep up. ThreeFive’s team has been on the leading edge of these changes since Hospital Corporation of America won its lawsuit in 1997.

There has been a plethora of changes around fixed asset depreciation in the recent years (e.g., TPR, Repairs, Betterments, Tax Reform et. al.) These changes have made it nearly impossible for taxpayers to keep up with basic compliance requirements, let alone trying to optimize the depreciation deductions.

Opportunity: Fortunately, the IRS has allowed taxpayers to look back and reclassify capitalized costs and claim any depreciation deductions they may have missed. This is sometimes referred to as a “reverse cost segregation study or fixed asset optimization study.” Any changes are reported on a Form 3115 and implemented in the current tax year. In other words, you do not have to amend prior returns to implement this idea.

Implementation: ThreeFive will conduct a comprehensive review of a business’s entire fixed asset roll to organize and optimize the method of depreciation for assets already placed in service. This includes all personal, real and intangible property.

Result: Taxpayers are often entitled to dramatically large deductions in the current tax year for the “catch-up” in missed depreciation deductions. Similar to a cost segregation report, we provide a comprehensive report for all the asset changes, any required forms (e.g., Form 3115) and detailed asset schedule for implementation into your fixed asset system.

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Nestled in the heart of the Twin Cities on Lake Calhoun, ThreeFive has fostered a work environment to attract key talent that is second to none in addressing corporate tax benefit opportunities for its clients.

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ThreeFive Inc.
3033 Excelsior Blvd., Suite 570
Minneapolis, MN 55416

612.353.6372 office
612.382.3483 after hours
connect@threefive.com