Walter O'Connell Tax Services, LLC (WOTS)

The lack of effective communication has been a burgeoning challenge in the business valuation space. This issue often arises between in-house and out-of-house accounting groups, as well as the diverse array of appraisal and valuation professionals hired for specific assignments. These parties operate in silos, leading to misunderstandings, discrepancies and inaccurate valuations.

This is where Walter O’Connell Tax Services, LLC (WOTS) comes in.

WOTS provides a variety of valuable services to businesses, including quality valuations and assessments. Its team of accredited personal property specialists offers expert valuations for various items, such as machinery, equipment, furniture, fixtures, fine art, gems, jewelry and other personal property categories. WOTS’ licensed commercial real estate specialists conduct in-depth market research to determine the highest and best use of a property. Additionally, the business valuation professionals collaborate closely with clients’ accounting teams to account for all properties held by the company.

“We are more than a business valuation firm,” says Walter W. O’Connell, founder and managing director. “We are a one-stop shop for full-service appraisal, valuation and cost segregation studies. Our one-team approach of having all valuation services under one roof allows for time efficiency and fee efficiency (low-fees).”

The company’s integrated services can be tailored to meet the specific needs of clients and their representatives. For example, if a CPA firm engages our firm, but did not require business valuation services, WOTS can customize its offerings to match the CPA’s needs. Similarly, if real estate is acquired without furniture, fixtures, and equipment, the company can adjust its services to exclude personal property valuation.

WOTS’ services are ideal for purchase price allocation (ASC-805) and fixed asset record development. It can ensure accurate purchase price allocation and precise fixed asset record development, helping clients meet accounting standards and regulatory requirements while optimizing financial reporting and asset management.

The company understands that many cost segregation firms often lack collaboration with appraisal and valuation professionals, which can hinder their clients’ potential for federal and state income tax savings. This shortfall can lead to missed opportunities to identify and leverage the tax-depreciable property in personal and intangible assets, which may result in reduced tax benefits.

In a recent scenario, WOTS worked with an apartment complex with various indoor and outdoor tenant amenities such as a clubhouse, leasing office, swimming pool, maintenance shop, furnished sample apartments and apartment appliances. A cost segregation firm, if hired, would have categorized all personal property as real property. This approach would typically allocate about 60 percent of the property to long-lived tax-depreciable assets (27.5 years).

In contrast, WOTS’ valuation team conducted a thorough assessment of the personal property within the apartments and common areas. They were able to reallocate an additional eight percent from long-lived tax-depreciable assets to 5-year short-lived tax-depreciable assets. This strategic adjustment enhanced the tax benefits for the property owner by accelerating depreciation and optimizing the overall tax strategy.

In another case, a cost segregation firm provided an estimate for the land value at 15 percent of the total acquisition value. WOTS’ team of real property commercial appraisers conducted a thorough assessment and valued the land at nine percent, which allowed for an additional six percent to be allocated for depreciation within the cost segregation study. This enhanced the accuracy of the depreciation analysis and maximized tax benefits for the project.

WOTS is at the forefront of providing businesses with comprehensive support through its full-service valuation team, offering all valuation services and cost segregation services under one roof. This approach eliminates the hassle of hiring multiple firms and ensures a streamlined process.