Tax Warrior Chronicles

Relief from the Tangible Property Regulations… Should You Take the Bait?

Posted on Tue, Mar 03, 2015

The IRS recently issued Revenue Procedure 2015-20 providing relief for many small businesses from the administrative burdens required to adopt the new tangible property regulations effective for 2014.  The tangible property regulations, which are more commonly known as the “repair regulations,” provide new rules for determining which costs should be capitalized and which should be expensed, and essentially require you to forget everything you once knew on the topic.  Old standards like “useful life beyond a year” have been scrapped and replaced with new terms of art: to be capitalized as an improvement, an expenditure must now rise to the level of a “betterment, adaptation, or

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IRS Issues Long-Awaited Final Tangible Property Regulations

Posted on Mon, Sep 30, 2013

The IRS has issued long-awaited final regulations providing guidance on amounts paid to acquire, produce, or improve tangible property in its September 19th Federal Register. The finalized regulations modify and supersede the temporary regulations that were in effect since December 2011. This is the fourth time the IRS has issued these so-called “repair regulations” but the first time they have been in final form.

The regulations are more than 200 pages long! In today’s post, we will discuss two of the specific provisions that you may find helpful in the year-end tax planning for your business.

 

The De Minimis Safe Harbor Has Been Simplified

Prior to the final regulations, you were

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