DEPRECIATION ACCELERATION ARCHITAX Capital Asset Review Via Revenue Procedure 99-49 & 2002-09 For fifty years John A. Mayes firms have provided Architectural, Engineering Interior Design, Modular Buildings and construction consulting services. For more than 25 years, John J Kevil Jr. has been a nationally recognized expert and leader in fixed asset reclassifications. Mr. Kevil is also a Licensed Architect, and has a broad experience in a vast range of industries. He has testified in Federal Tax Court on 1245/1250 property issues. Mr. Mayes and Mr. Kevil have prepared hundreds of reports regarding these and other issues. Mr. Kevil has worked closely with the IRS which has reviewed his work favorably over the years. Our goal is to always maximize our client’s depreciation allowance while minimizing the level of audit exposure. It is imperative to clearly substantiate the correct asset classification through invoices, engineering analysis and other documentation. Architax has the expertise and the experience to efficiently find tax savings with minimal disruption to your staff and general operations. Proven Success Personal property is often overlooked or buried in the overall cost of a real estate project, resulting in the significant loss of valuable tax savings. This happens because of the considerable gap that exists in the rates of depreciation (recovery) between real and personal property. As a result of the differences in the recovery periods, careful consideration should be given to constructed property, purchased property and leasehold improvements. By correctly reclassifying property from a 39-year to a 7-year asset group, the tax savings benefit for every $100,000 reaches $20,000. For land improvements, the after-tax present value for every $100,000 exceeds $10,000. Look-back Fifteen Years Reclassification of eligible assets acquired in the last fifteen years achieves benefits for the next tax period for all missed items during that time. Phase I-Identifying Tax Savings Phase I is a scoping process, which includes performing a diagnostic review of your business, investigating your record-keeping process and reviewing capitalization policies. To establish the scope of Phase I, our team will: • Review your fixed asset records (preferably in electronic form), invoices and other documents to quantify the savings potential. • If necessary, expand our initial review to any additional facilities that may merit a site visit and Phase I review. • Based on the savings and issues identified in Phase I, we make recommendations to you as to whether it is prudent to continue with the analysis and begin with Phase II. Phase II-Claiming Depreciation Benefits If, upon completion of our initial work, it is determined that significant tax savings opportunities exist, we will: • Compile a complete list of the facilities for examination along with a list of contracts for these locations • Assemble a team of Architax personnel to gather the necessary documentation and thoroughly analyze the expenditures. • Perform on-site inspections to gather additional documentation and obtain firsthand knowledge of the operations at each facility. When necessary, we will conduct interviews with on-site personnel, which you have identified as key contacts for information. • Complete our analysis and provide you with a report that includes copies of all support documentation, written procedural memos and facility/process descriptions, and the total adjustment amount (481(a) adjustment) resulting from our work. To discuss how your company can benefit from this unique opportunity, and receive a trial benefit based upon your building type industry averages Please call Jack Mayes or John Kevil at (630) 782-0225. mayesinc@rcn.com mayes@mayesarc.com ARCHITAX Capital Asset Review Via Revenue Procedure 99-49 & 2002-09 • Maximize Depreciation Our goal is to always maximize our client’s depreciation allowance while minimizing the level of audit exposure. It is imperative to clearly substantiate the correct asset classification through invoices, engineering analysis and other documentation. Architax has the expertise and experience to efficiently find tax savings with minimal disruption to your staff and general operations. • Minimize Audit Exposure Our goal is to always maximize our client’s depreciation allowance while minimizing the level of audit exposure. It is imperative to clearly substantiate the correct asset classification through invoices, engineering analysis and other documentation. • Segregate Personal Property Personal property is often overlooked or buried in the overall cost of a real estate project, resulting in the significant loss of valuable tax savings. This happens because of the considerable gap that exists in the rates of depreciation (recovery) between real and personal property. As a result of the differences in the recovery periods, careful consideration should be given to constructed property, purchased property and leasehold improvements • Look-Back Fifteen Years Reclassification of eligible assets acquired in the last fifteen years achieves benefits for the next tax period for all missed items during that time • Phase I Study and Recommendation Phase I is a scoping process, which includes performing a diagnostic review of your business, investigating your record-keeping process and reviewing capitalization policies, review fixed asset records and make recommendations/ • Phase II Study and Benefit Claim If significant tax savings opportunities exist, complete our analysis and provide you with a report and the total adjustment amount (481(a) adjustment) resulting from our work. • How to tell if your audit missed this opportunity Plans are vital to the process. If your accountants have not requested them, you can be certain the depreciation schedule has missed eligible construction work that could have been accelerated. Absence of plans requires a Cost Segregation Study utilizing field quantity survey and estimates using an approved system to qualify for benefits. To discuss how your company can benefit from this unique opportunity, and receive a trial benefit based upon your building type based upon industry averages please call Jack Mayes or John Kevil. • Maximize Depreciation • Minimize Audit Exposure • Segregate personal Property • Look-Back Fifteen Years • identify Tax Savings • Phase I Review and Recommendation • Phase II Study and Benefit Claim
			+ view example Look Back