Personal story from Angie Bolton-Lyons, Senior Fixed Asset Consultant and Sage FAS Guru!
I was on vacation back in February at a beautiful resort – in a beautiful place. Most people would notice the gorgeous views (which I did) and all the elaborate decor. I however, being a fixed asset consultant for many years and knowing about the costs of movable assets, I noticed other things. Beautiful, expensive things. Lots of fixed assets! I wondered to myself, has this resort ever performed a physical inventory of all these fixed assets?
As I walked around this elaborate resort, I also noticed that a lot of renovations just finished and even more construction is about to begin. Then I wondered… Did they take all those assets they just ripped out through a retirement study? Or perhaps they did a thorough Cost Segregation Study after the original build out. If that’s the case, then, they probably accounted for all those assets they tore down and disposed of them properly. Thus showing on their balance sheet, property taxes, insurance, etc. Hummm?
Off to my room to check in and check this place out more. I continued to walk around and notice so many beautiful things… I wonder how much they paid for all this landscaping and I asked myself, “self, do they know that a lot of landscaping can actually qualify as personal property?” After contemplating for a bit more, I noticed it was now Happy Hour!
Since I love $5 Mai Ties and I’m not shy, I befriended my bartender. After a ton of mindless chit chat (which I thoroughly enjoyed – mind you, I’m on vacation), eventually I asked him if their were any upcoming renovations happening soon. He said, “well Angie in fact there is… see that fancy sushi restaurant over there? This is the last week they are serving. After it’s torn completely down, they are getting a complete million dollar re-build/renovation. You better go eat there while the gettin is good.” So you know what I thought? Exactly (because obviously, I’m a nerd)… who is the Controller or CFO around here and can I please double-check with them to see if they are properly recording their disposal’s and rebuilding the most appropriate way to capture all the tax benefits they can? How about a tax engineered cost segregation service? Yikes!
I know my mind should be on my wonderful vacation, especially since it has been eight years since I’ve taken one. However, I often think about all the hotels and other hospitality prospects and clients out there that have NEVER done a physical asset inventory, let alone a proper Cost Segregation and Valuation study. They could be overpaying property taxes, not gaining all the tax benefits they have available to them and… could be under insured! Three days after we left, a Tsunami hit. Hope they were covered!
Always working and thinking about fixed assets – Angie Bolton-Lyons