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

Tax Insights
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 regulations issued on September 13, 2013.

The final repair regulations address the deduction and capitalization of amounts paid to acquire, produce or improve tangible property under Sections 162(a) and 263(a). These final regulations replaced and removed the temporary regulations issued on December 23, 2011. 

The final repair regulations are broad in scope and will affect most taxpayers that acquire, produce or improve tangible property.     


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