IRS Issues Final Tangible Property Regulations – Repair v. Capitalize Property Improvements

The IRS has issued the much anticipated final tangible property regulations, and can be reviewed here,  and are expected to be published in the Federal Register on 9/19/13 .  New rules now guide taxpayers as to whether to repair v. capitalize improvements to property.  Covering 222 pages, and considered by many to be the most extensive changes since the Tax Reform Act of 1986, businesses and their tax preparers will be working to implement most of the changes that are required to be implemented generally for taxable years beginning on or after January 1, 2014.  Several of the provisions will be beneficial to taxpayers, allowing retroactive deductions in the current year return.  Others are aimed at spreading deductions over longer periods of time.  There are some provisions that offer exceptions for small to medium sized business with less than $10 million in sales.

Stay tuned as the we dig through the rules for benefits to you.

Written by

Steve Moss, CPA is a partner at Holden Moss CPAs and loves helping businesses and their owners grow to be the very best they can be. Our other offices include Raleigh, Oxford and Warrenton.

We are a little different at Holden Moss CPAs. While we still provide traditional tax and accounting services, years ago we realized many clients wanted help in running their businesses and were hungry for ideas, solutions, strategy, and execution. In response, we expanded our skill set and joined Ran One, a global network of business consulting firms. Our membership with Ran One gives us access to proprietary resources and analytical software to help our clients grow, become more profitable and valuable, and have the lifestyle they desire.

Now, blended into the fabric of our normal tax and accounting needs, we are focused on our clients’ businesses in a very different way. While our approach is not right for everyone, for those whom it is, incredible results may be obtained. Whether you have a new, or established, business, or for those in transition of selling or retiring, or for those who simply need to develop an exit strategy or succession plan, our unique approach to client service may be the edge you need.

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