Mining and Aggregates
Schneider Downs’ Energy and Resources Services Industry Group provides specialized services to clients operating in the mining and aggregate industries.
We provide audit, tax and consulting services, as well as assist your company with mergers and acquisitions, equipment financing, productivity analyses, lease vs. buy decisions for major asset additions, structuring of transactions to gain the most favorable tax treatment allowable and a review of your internal accounting policies and procedures.
Some of the services and capabilities that Schneider Downs provides to clients in the mining and aggregates industry are as follows:
- Review of the entity selection (e.g. proprietorship, joint venture, partnership or incorporation), based on the specifics of the situation and the business objectives, to determine the best possible organizational structure for your business.
- Guidance on operating agreements, lease contracts and partnership agreements to determine the best method of investment (limited vs. general partner) and the related tax considerations.
- Review of potential investments not only from a tax standpoint, but also from an economic standpoint to determine if the investment is feasible.
- Analyze development and exploration costs to determine if all income tax elections are timely and properly made and ensure that all development and exploration costs are properly handled, based on the taxpayer’s individual tax situation.
- Evaluation of the percentage depletion computations for income tax compliance and identification of planning opportunities to enhance current deductions.
- Assistance in tracking development costs by mineral property to ensure total tax basis has been captured.
- Assistance in determining the effect that proposed transactions will have on the taxpayer from both a tax and a financial statement perspective.
- Benchmarking comparisons of similar businesses to determine if an entity is operating in an efficient and effective manner and earning an appropriate return on its investment.
- Analysis of operations to ensure compliance and to identify all tax savings opportunities at the state level (e.g. assist with P.U.C. licenses for hauling operation; assist with the purchase of state tax credits at a discounted percentage of value.
- Purchase price accounting assistance.
- Assistance in connection with the evaluation of purchase or sale of mineral interests, including tax planning related to the transaction structuring, purchase price allocation and related cash flow.
- Guidance on FASB Accounting Standards Codification Topic 410, "Asset Retirement and Environmental Obligations" as it relates to reclamation reserve liability calculations.
- Evaluation of the company’s tax preference items to minimize the federal alternative minimum tax impact and development of strategies to utilize minimum tax credit carry forwards.
- Evaluation and planning relative to state tax credit opportunities and filing positions.