Tangible Property Repair Regulations

Your latest Repair Regulations information

President Obama signs tax extender, government funding legislation

President Obama late on December 18 (date of enactment) signed into law legislation (H.R. 2029) that includes a $680 billion tax package and funds the federal government through September 30, 2016.


Recent IRS guidance provides safe harbor accounting method for eligible retail and restaurant businesses

The IRS recently released Rev. Proc. 2015-56, providing a safe harbor for taxpayers operating a retail establishment or restaurant for determining whether expenditures paid or incurred to remodel or refresh a qualified building are deductible under Section 162(a) or must be capitalized as improvements under Section 263(a) or 263A.


IRS increases de minimis safe harbor limit for taxpayers without an ‘applicable financial statement’

The IRS recently released Notice 2015-82 (Notice), increasing the de minimis safe harbor limit in Reg. sec. 1.263(a)-1(f) for taxpayers without an ‘applicable financial statement’ (AFS) from $500 to $2,500.

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How will your company be affected by the Repair Regulations?

  • On September 13, 2013, the IRS and Treasury released regulations that create new rules related to the acquisition, production, or improvement of tangible property. These rules are meant to help companies better distinguish between currently deductible repair and maintenance expenses and expenditures that must be capitalized.

How we can help you

Our fixed asset tax specialists can help your company:

  • Review its current policies regarding how repair expenditures are treated for federal income tax purposes under your current method(s) of accounting
  • Identify available current year repair deductions
  • File the requisite application(s) for change in accounting method to comply with the repair regulations
  • Update its fixed asset tracking procedures and implement system changes to improve the tracking and calculation of repair expenditures for future tax years
  • Seek relief through the drafting of thoughtful comment letters