The Complete Tax Planning Strategy (A Lexicon Exclusive)
An Integrated Fixed Asset Study is a powerful tax planning strategy that evaluates a taxpayer’s entire depreciation schedule to find opportunities to accelerate deductions and improve cash flow. This strategy reviews all assets for a multitude of opportunities, including:
Cost Segregation
Commercial buildings are depreciated slowly over 39 years. A cost segregation study carves out components from buildings that qualify for more rapid depreciation, such as land improvements and personal property. Click here to visit our Cost Segregation page.
Individual Asset Review
Individual assets are often inappropriately depreciated as part of a building, such as process-related plumbing, electrical, and ventilation systems. This study identifies assets qualifying for more rapid depreciation.
Capital to Expense Studies
The new TPRs allow taxpayers to retroactively review expenditures that were capitalized but qualify as repair and maintenance expenses, such as replacing roof membranes, resealing parking lots, and replacing of HVAC components.
Retirement Studies
Taxpayers often have ‘ghost assets’ in their fixed asset systems, such as removed roofs and HVAC components. A retirement study identifies these assets, allowing taxpayers to immediately deduct the remaining undepreciated basis.
Partial Dispositions
The TPRs now allow taxpayers who make improvements to their facilities to immediately deduct the cost of the removed building components and to instantly write off undepreciated basis amounts.
Section 179D Energy Efficient Commercial Building Deduction
Taxpayers who construct new buildings or make improvements to existing ones can take an immediate deduction of up to $1.80/SF for investments in efficient lighting systems, HVAC and hot water systems, and the building envelope. Click here to visit our Section 179D page.
Section 45L Energy Efficient Home Credit
Allows eligible developers to claim a $2,000 tax credit for each newly constructed or substantially reconstructed qualifying residence, including single-family homes, apartments, condominiums, and student housing. Click here to visit our Section 45L page
Demolition Costs
Demolition costs for building improvements are often capitalized with the cost of a new asset but can now be immediately deducted under the new TPRs
Bonus Depreciation
Bonus depreciation allows taxpayers to immediately write off from 30% to 100% of the purchase price of a new asset but is often missed. This study identifies missed bonus opportunities.
Intangible Asset Review
Taxpayers often have an intangible asset on their fixed asset records that are amortized incorrectly or can be removed, such as an expired non-compete agreement. This study reviews intangibles for opportunities to accelerate amortization.
Our proprietary CapitalPLus™ software has a powerful depreciation system that compares how depreciation is currently calculated to our preliminary analysis. It then calculates the additional deduction and additional cash for the current year, the net present value of benefits, and the Section 481(a) adjustment used on Form 3115, Application for Change in Accounting Method. To demonstrate the importance and ability of this proven, advanced tax planning strategy, we will perform a preliminary evaluation free of any cost or obligation.
When engaged to perform the study, we will perform necessary site visits, review construction documents, conduct interviews, analyze invoices, and do all the steps required to confirm and document our positions on identified opportunities. We will draft necessary Form 3115s and, with our CapitalPlus™ software, assist in making changes in the fixed asset system. If the study is ever challenged, we will provide free audit support through our Lexicon Audit Defense Protection.
Click below to view sample reports of our CapitalPlus™ software at work.
Our Technology
Our fixed asset analysis technology was designed in-house and is exclusive to Lexicon. It has been used to complete hundreds of successful projects for manufacturers, financial institutions, telecommunication companies, retailers, property investors and numerous other taxpayers operating in a wide variety of industries. Click below to view sample reports from of our proprietary software:
ALL LEXICON’S PRELIMINARY ANALYSES ARE PROVIDED AS A PROFESSIONAL COURTESY FREE OF ANY COST OR OBLIGATION.
OUR CERTIFIED DELIVERABLES ARE ALL BACKED BY LEXICON’S AUDIT DEFENSE PROTECTION FREE OF ANY ADDITIONAL COST, MEMBERSHIP, OR COMMITMENT.
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We are excited to demonstrate why Lexicon’s exclusive Integrated Fixed Asset Study is the most powerful corporate tax planning strategy available anywhere.
One of our Integrated Fixed Asset specialists will respond within twenty-four hours.