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.