Fixed asset services
Maintaining compliance and managing cash flow
Managing tax timing, deductions, and fixed assets takes more than just compliance. It takes strategy.
We help you evaluate accounting method opportunities—from depreciation and cost capitalization to leasing and bonus issues—so you can manage cash flow and align with your broader tax objectives. PwC combines deep tax technical knowledge with advanced technologies and data-driven insights to help identify opportunities and support more informed decision-making.
Here’s how we help:
- Review your fixed asset register to identify assets that may not require capitalization or may be eligible for a shorter recovery period, triggering a catch-up deduction through a method change.
- Teaming with our Washington National Tax Practice, advise on timing, procedural requirements, and filing considerations for Form 3115.
- Assess how accounting method changes interact with other tax provisions (like interest expense limitations).
The right strategy can help you to improve compliance, reduce risk, and free up cash without losing sight of the bigger picture.
Learn more about STS fixed asset services
- Tax fixed asset methods and election studies
- Tax cost segregation study
- Repairs study
- Fixed asset tax basis balance sheet process and remediation
- Tax Depreciation Services (TDS)
Tax fixed asset methods and election studies
Current and historical fixed asset methods and election studies
PwC works with companies to initially classify new fixed assets and update historical fixed asset classifications as well as remediate the effects of under- or over-depreciated assets. Specifically PwC works with companies to properly allocate and classify fixed assets placed in service during the current year as Section 1245 or Section 1250 property (often buildings that have been recently constructed or acquired) as well as deductible Section 162 expenditures, including helping with Section 1060 purchase price allocations. PwC also can help companies with fixed asset planning related to certain international-focused tax provisions.
Tax cost segregation study
Strengthen the financial performance of your real estate assets with a strategic tax cost segregation study
A tax cost segregation study can assist property owners to accelerate depreciation by reclassifying qualifying building components into shorter recovery periods. This approach may increase near-term tax deductions, enhance cash flow, and improve overall return on investment. Recent taxpayer-favorable enhancements to bonus depreciation provisions under Sections 168(k) and 168(n) may further strengthen these benefits. When applied in conjunction with a cost segregation study, these provisions can amplify early-year tax savings and improve liquidity.
Repairs study
Enhance your cash flow and identify potential tax savings with a tax-deductible repairs study
A repairs study identifies expenditures within your property that may be properly classified as deductible repairs and maintenance, rather than capital improvements. By applying the relevant standards under the Internal Revenue Code and tangible property regulations, this analysis may allow you to expense qualifying costs in the current year—reducing taxable income and improving near-term liquidity. Often performed in conjunction with renovations, acquisitions, or ongoing property maintenance, a tax-deductible repairs study may uncover substantial deductions that may otherwise be capitalized and depreciated over time.
Fixed asset tax basis balance sheet process and remediation
PwC works with companies to leverage technology in the labor intensive process of maintaining tax basis reconciliations as well as assist companies with remediation of variances in the cumulative tax basis balance sheet.
Tax Depreciation Services (TDS)
PwC leverages its fixed asset professionals and proprietary software to (1) help companies accurately track fixed asset depreciation, gain/loss, and book-tax differences for tax reporting purposes and (2) provide an automated interpretation of asset activity and attributes including location and intercompany transactions and reconcile book ledger activity on an asset by asset basis to tax. This technology enabled service offering helps clients maintain consistent reporting for federal and state income tax reporting and has additional benefits related to property tax maintenance and tax basis balance sheet support.
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