Tax & Exemption
Developing a fully informed plan to assist in managing the complex tax landscape
Tax Services
There are numerous implications related to fixed assets spanning state, federal and international tax law. Deficient fixed asset recordkeeping and management can lead to excessive federal and property tax payments, excessive utility costs, penalties related to the Foreign Investment in Real Property Tax Act (FIRPTA) and other significant fines through state and federal audits. We can help you to reduce these liabilities, defer tax payments, and in some cases, provide a tax refund. We offer solutions for each of the following issues:
- Cost segregation studies (federal tax deferral or deduction)
- Renewal energy segregation studies and validation (federal tax deferral or immediate deduction)
- Tangible property regulations services (federal tax deferral or immediate deduction)
- Tax purchase price allocation (federal tax deferral or immediate deduction)
- Property tax asset listing inventory and reconciliation procedures (state & local tax reduction or refund)
- Property tax exemption studies (pollution control, etc.) (state & local tax reduction or refund)
- Property tax cost segregation studies (state & local tax reduction or refund)
- Property tax valuation services (state & local tax reduction or refund)
- Prominent use study (state & local tax reduction or refund)
- FIRPTA study
Property Tax Valuation & Advisory
Property tax laws differ from state to state and often vary by local jurisdiction, which makes keeping up with changes to property tax law an onerous task. In addition, many companies assume that one of their largest annual operating costs - property taxes, are fixed and unchangeable.
Yet, property taxes are based on the values of tangible assets and we often see assessed valuations that do not reflect current market trends. We have experience bringing valuation and engineering knowledge to an assessment problem and achieving the desired outcome - reduced property taxes.
We work with clients or their property tax advisors to accomplish their objectives through the following products:
- BPP Valuations
- Lifing Studies
- Market Curve Development & Support
- Industry or Asset Obsolescence Studies
- Cost Segregation
- Embedded Software
- Inventory Cost Discount Analysis
- Condition Assessments
- Other Complex Engineering Studies
Transaction Due Diligence & Risk Management
Public and private companies make a significant investment in their fixed assets and rely on them to meet their operational needs. Understanding the risks and analytics associated with fixed assets is paramount to managing an existing business or when considering expansion through capital investment or acquisition of another company. B. Riley has expertise in many of the crucial assumptions and decisions made with regards to fixed assets. Our team has experience in every aspect of the life cycle of fixed assets: Planning and acquisition, expectation of useful life, maintenance and capital expenditure requirement, retirement and disposition. We offer tailored solutions for each of the following:
- New asset procurement - comparative benchmarking, pricing and functionality analysis
- CapEx and maintenance planning and projection analysis
- Growth projection feasibility studies
- Economic and normal useful life study - planning, reporting, sale leaseback, etc.
- Condition assessment analysis
- Utilization studies
- Value assessments
- Fixed asset disposition planning and pricing analysis