Tangible Property Repair Regulations

Your latest Repair Regulations information

IRS issues final regulations regarding dispositions of tangible depreciable property

The IRS today released final regulations under Section 168 regarding the disposition of tangible depreciable property (the final disposition regulations), which modify the proposed disposition regulations that were issued in September 2013 (the 2013 proposed disposition regulations).  These regulations are designed to help taxpayers further analyze their current methods of accounting and implement any needed changes.

 

IRS issues accounting method change procedures for dispositions of tangible depreciable property

The IRS released Rev. Proc. 2014-17, providing rules under which taxpayers may make accounting method changes related to dispositions of tangible depreciable property.

 

IRS provides guidance to help taxpayers understand impact of final repair regulations

Rev. Proc. 2014-16, released on January 24, 2014, provides the change in method of accounting procedures for taxpayers to comply with the final tangible property regs.

 

New IRS guidance may help taxpayers further analyze and implement the tangible property ‘repair’ regulations

The IRS today released Rev. Proc. 2014-16, which provides rules pursuant to which taxpayers may make accounting method changes related to the tangible property ‘repair’ regulations. This revenue procedure supersedes Rev. Proc. 2012-19, which was issued over a year ago in connection with the temporary repair regulations and modifies certain sections of Rev. Proc. 2011-14. Rev. Proc. 2014-16 is designed to help taxpayers further analyze their current methods of accounting and implement any necessary changes.

 
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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

Tangible property regulations: Practical issues to implementing the final regulations and accounting method procedures

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