The impact of the repair regulations on the real estate industry

January 2013
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The impact of the repair regulations on the real estate industry

At a glance

The IRS recently published Notice 2012-73, which announced an intent to delay the effective date of the “repair regulations” that provide new rules related to the acquisition, production, or improvement of tangible property until taxable years beginning on or after January 1, 2014.

On December 17, 2012, the IRS formally amended the effective date of repair regulations through the issuance of temporary regulations moving the applicability date.

In light of the modified effective date, taxpayers in the real estate industry will have additional time to evaluate the impact of these regulations.

Notwithstanding the modifications to the effective date of the repair regulations, taxpayers in the real estate industry should begin to assess the impact of these rules in the near term, as there are both technical and practical issues that must be considered.