The IRS has released much-anticipated final “repair” regulations (T.D. 9636) governing when taxpayers must capitalize and when they can deduct their expenses for acquiring, maintaining, repairing and replacing tangible property. The final regulations make significant taxpayer-friendly changes to the 2011 temporary regulations (T.D. 9564). Compliance with the labyrinth of rules in the final regulations, however, will challenge virtually every business, especially in light of an approaching January 1, 2014, effective date.
The CCH Tax Briefing includes a discussion of final rules relating to materials and supplies (including rotables), de minimis expensing, capitalization of amounts paid to acquire or produce tangible property and the capitalization of improvements, betterments and restorations (i.e., the repair v. capitalization issue). Proposed regulations (NPRM REG-110732-13) also include changes to the Modified Accelerated Cost Recovery System (MACRS) that are discussed in detail.
Since 1913, CCH has provided tax professionals with the most comprehensive, ongoing, practical and timely analysis of the federal tax law. In the spirit of this tradition, CCH is providing practitioners with everything they need to know about the revised repair/capitalization regulations.
CCH’s Award-Winning Briefing Now Available
CCH’s Tax Briefing highlighting the repair/capitalization regulations is now available at: http://tax.cchgroup.com/downloads/files/pdfs/legislation/repair-capitalization-regulations.pdf . This CCH Tax Briefing alerts tax practitioners and their clients to what is contained within the new regulations.