Case Study: Midstream – Mining

⬤ 01. Challenges

Streamlining Processes and Aligning Accounting Items for a Regional Business Acquisition

When our client, a regional business, acquired a smaller company after emerging from bankruptcy, they faced several challenges in streamlining processes and aligning accounting items.

Notably, there was a significant disparity between the assessed valuation of their assets and the values recorded after the reorganization. Additionally, the regional-based business operated in a segmented manner without a centralized reporting location, further complicating its property tax function.

⬤ 02. Approach

Leveraging In-House Appraisers and Centralizing Property Records for Optimal Tax Savings

To address these challenges, we leveraged our in-house team of ASA appraisers specializing in machinery and equipment. Our approach involved examining the newly recorded asset values and utilizing historical data, replacement cost analysis, and aggressive depreciation schedules to optimize tax savings. Furthermore, we centralized all property records, renditions, and bills within our systems, streamlining the management of the client’s property tax function and enhancing efficiency.

⬤ 03. Solution

Consolidating Property Tax Function and Saving $585,000 through Customized Solutions

By combining our expertise in the field of property tax management with customized systems, we successfully consolidated and centralized the client’s property tax function. This comprehensive solution enabled us to save the client a remarkable $585,000 in taxes by utilizing the rebooked costs of their assets. Through accurate valuation assessment, strategic tax planning, and efficient record-keeping, we not only maximized tax savings but also provided the client with a streamlined and centralized property tax management system, promoting better financial control and compliance.

Through our tailored approach, we were able to address the challenges arising from the business acquisition, effectively optimizing tax savings and simplifying the client’s property tax function. By combining expert knowledge, historical data analysis, and streamlined systems, we provided our client with substantial financial benefits while ensuring compliance with property tax regulations.

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