Cost Segregation

In 1997 Hospital Corporation of America won a landmark tax court case involving cost segregation. They successfully defended the application of engineering-based Cost Segregation as a viable method to differentiate real and personal property under existing law. Due to new legislation, Cost Segregation has now become viable for more commercial property owners. During 2002, the IRS adopted changes in their methods of depreciation via Form 3115, filed with the return in the year the change is elected.

With a specialized engineering based study, different components of your real property might, for example, be depreciated over a 5 to 7 year period versus depreciating the entire property over 39 years. Noted below is an estimate of the typical eligible percentages for accelerated depreciation by property type.

P.E. Pennington & Co., Inc has entered into a strategic alliance with a Cost Segregation engineering firm to help our clients who have not taken advantage of accelerated depreciation on their property. If you would be interested in a free cost benefit analysis, please feel free to contact me at 972.300.0580 (102) or ppennington@pepennington.com

Sales and Use Tax

We are pleased to announce the alliance between P.E. Pennington & Company, and a firm offering Sales and Use Tax Consulting. The alliance partner, Stephens Dixon will provide our clients coverage in this very complicated focus of Sales and Use Tax. They bring with them a wealth of experience in this area specifically in construction, manufacturing, equipment rental and the service industry, particularly restaurants. They have $15 million in recovery to its credit and has served companies of all sizes from the small restaurant down the street, to large big box retailers, and the members of the Fortune 100.

Additionally, our alliance partner will address overpayments that have been potentially made by identifying them using proven audit techniques in review of accounts payable and procurement through related invoices, purchase orders and shipping documentation.

The process is simple. They will need to review and identify any overpayments in your accounts payable that will need to be done on your part is to show them to your AP and they take it from there. Our alliance partner will review, electronically scan, and refile any overpayments with the state and municipality on your behalf- after your approval. Nothing need leave your office and all information is securely maintained. They will show you the source of any oversight and correct these problems so that you will have these savings in the future.

For further information please contact Paul Pennington @ 972.300.0580, ext. 102 or ppennington@pepennington.com