Have you previously removed or replaced any structural components of your building(s) such as a roof, HVAC equipment, doors, windows, etc.?
If you have, you could substantially benefit from an Asset Retirement Study.
Section 162 of the Internal Revenue Code (IRC) allows the deduction of all the ordinary and necessary expenses incurred in the current taxable year while carrying on your trade or business. However, section 243(a) of the IRC must also be considered to determine if the removed or replaced structural component(s) are currently deductible or must be capitalized. If it is determined that the assets are deductible, then the next step is to write-off the assets.
The problem: How to determine or break-out the cost of the disposed asset.
At M&E Cost Segregation we determine specific asset costs on a daily basis. While performing our engineering based cost segregation services, we assign costs to every component of a building. An Asset Retirement Study is a limited scope in engagement in which we are applying engineering & costing methodologies to one or several large assets.
We will provide a No Cost, No Obligation, Asset Evaluation that will show an estimated range of benefit and our flat fee to conduct the study. This provides the opportunity to make an educated decision before moving forward with the study.
Furthermore, we will defend our findings at no charge to the client.
Contact Us today to get additional information or to start the evaluation process.