Final Tangible Property Regulations Are Issued
The Internal Revenue Service released the long-awaited final Regulations for Tangible Property, (T.D. 9636) on September 13, 2013. These regulations were originally proposed in 2006, and have been revised numerous times based on the comments the IRS had received.
The new rules were created to provide guidelines for determining whether costs related to acquisition, maintenance, and improvement of tangible property are direct write-offs or capital improvements which would be depreciated over the life of the asset.
Another area of significant change is the disposition of building structure components. If assets are tracked appropriately, taxpayers have the opportunity to realize losses for the assets that are disposed of separately.
Although the new regulations provide for “bright-line” tests and “safe- harbors,” the rules are very broad and there are many facts and circumstances that need to be considered to ensure the expenditures are classified appropriately.
You can learn more about these rules and regulations at a complimentary webinar on Tuesday, October 22, 2013 at 12:00 PM EST.