Fixed Review Services

Proper organization and classifi cation of a taxpayer’s fi xed are critical to a company’s management and compliance objectives. Improper capitalization of fi xed assets can have a substantial negative impact on an organization’s , resulting in missed tax savings and added compliance risks.

Ryan’s comprehensive review looks at a taxpayer’s entire schedule to ensure the correct tax treatment is being applied to each asset. The changes and opportunities from these reviews may result in accelerated deductions that reduce and improve cash fl ow in the year of change. Capital-intensive clients may wish to elect this process because it reviews all assets for a multitude of opportunities, including capital versus , retirements, partial dispositions, demolition costs, proper bonus treatment, and missed cost segregation studies.

Cost Segregation Studies The goal of a cost segregation study is to identify and properly classify assets to reduce tax liability and improve cash fl ow. Ryan’s Cost Segregation team will identify personal property subject to 5-, 7-, or 15-year recovery periods that would otherwise be included with real property recovered over 39 or 27.5 years. Capital expenditures involving property acquisitions, newly constructed renovations, remodels, restorations, tenant improvements, or expansions are all good candidates for cost segregation.

Ryan’s -ready deliverables not only create tax savings but also establish the depreciable tax value for each major building component, which helps in future tax years to easily identify the value of “retirement losses” or “partial dispositions.” We will also assist with the implementation of these changes to your fi xed asset systems.

The Internal Service (IRS) allows a taxpayer to go back as far as 1987 to reclassify personal property items that have been incorrectly depreciated. This change in depreciable lives is prospective, and no amended returns are required. A change in method can be completed in the current tax year to implement the corrected recovery periods, and favorable changes are entirely deductible in the year of change.

Ryan’s cost segregation review services include a comprehensive analysis of supporting documents for capitalized assets, including construction documents, invoices, purchase orders, and other relevant and detailed cost information relating to select asset additions and facilities. Additionally, a thorough tour of select facilities, as well as an analysis of the detailed site plans and information of costs incurred for the various construction projects, will be considered as part of the cost segregation study. Depreciation Review Focusing on historical assets as far back as 1987, a depreciation review from Ryan can reclassify assets, leading to an immediate increase to depreciation deductions without the need to amend any tax returns.

Repair and Maintenance Review (Tangible Property Regulations) Ryan’s Fixed Asset Review team has experience with capitalization policies and the new tangible asset regulations. Our repair review analysis can identify specifi c repairs, renovations, and remodel costs that have been capitalized and may qualify as a period expense. Additionally, the team is experienced with the new elective retail safe harbors.

Ryan Methodology and Approach The approach and methodology of our reviews will analyze your fi xed asset management and identify risks. We will secure every tax minimization opportunity available and ensure compliance with the regulations.

In-Depth Reviews To ensure we uncover all possible tax benefi ts for your company, we conduct an in- depth review of all property and capital expenditures eligible for reclassifi cation and scrutinize your depreciation and amortization practices and schedules. We work closely About Ryan with your facility managers to determine your unique operation in relation to your Ryan, an award-winning global tax services capitalized assets. This entails reviewing capital projects and purchase price allocations and software provider, is the largest Firm in to ensure the accuracy of both asset descriptions and cost accumulation and determine the world dedicated exclusively to which projects/assets can be grouped. We also interview third-party vendors, when taxes. With global headquarters in Dallas, Texas, the Firm provides an integrated suite appropriate, to determine the classifi cation of contract expenditures. of federal, state, local, and international tax services on a multijurisdictional basis, Deliverables including tax recovery, consulting, advocacy, compliance, and technology services. Ryan is Ryan provides the following deliverables upon completion of your review: a nine-time recipient of the International Service Excellence Award from the Customer Calculation of tax depreciation for reclassifi ed assets, using current Service Institute of America (CSIA) for its commitment to world-class client service. methods and revised methods to determine the current year “catch-up” Empowered by the dynamic myRyan work deduction and net present value tax benefi t environment, which is widely recognized as the most innovative in the tax services Narrative report describing the methodology, assets reclassifi ed, and industry, Ryan’s multidisciplinary team of more than 3,000 professionals and associates conclusions serves over 18,000 clients in more than 60 countries, including many of the world’s Preparation of Change in Accounting Method (Form 3115) to be fi led with most prominent Global 5000 companies. your tax return and fi led with the IRS for the year of change More information about Ryan can be found at ryan.com.

© 2021 Ryan, LLC. All rights reserved. In North America, Ryan, LLC; Ryan Tax Compliance Services LLC; Ryan Tax Compliance Services, ULC; and Ryan ULC provide clients with tax Award-Winning Tax Services consulting, recovery, compliance, advocacy, technology, and other client-related professional services. Ryan, LLC is a member fi rm of Ryan International, a Swiss Verein. Ryan ULC; Ryan Tax Compliance Services LLC; and Ryan Tax Compliance Services, ULC are constituent entities of Ryan International, a Swiss Verein. Ryan International is a Swiss Verein whose member fi rms and constituent entities form a leading network of tax advisory and consulting fi rms, each of which may be licensed to use the name “Ryan” in connection For additional information with providing tax advisory and consulting services to its clients. The member fi rms of Ryan International and their constituent entities operate throughout North America, Europe, and in Australia, in accordance with local regulatory requirements but are not a part of a single international partnership. The responsibility for the provision of services to 1.855.RYAN.TAX a client is defi ned in the terms of engagement between the client and the applicable member fi rm or constituent entity. Neither Ryan International nor any member fi rm or constituent entity of Ryan International is liable or responsible for the professional services performed by any other member fi rm or constituent entity. Ryan International is not ryan.com engaged in the practice of providing professional services. Rather, it is an international umbrella entity organized as a Verein under Swiss law. Not all member fi rms and constituent entities provide the full range of services mentioned in this brochure. “Ryan” and “Firm” refer to the global organizational network and may refer to one or more of the member fi rms of Ryan International, each of which is a separate legal entity.