Tangible Property Regulations
The wait is over and now the effort of compliance begins. On September 19, 2013, the IRS issued the final tangible property repair regulations for Sections 162(a) and 263(a), which modified and superseded the temporary regulations issued on December 23, 2011.
Impacting nearly every business, the regulations provide taxpayers with a broad range of guidance on whether to capitalize or expense amounts paid to acquire, produce, or improve tangible property. Revising repair processes is not a trivial task. It requires taking a hard look at your tax and accounting systems and procedures. You’ll need to devise ways to ensure accuracy, enforce policies, reduce manual effort, and document facts and decisions as you work towards compliance by January 1, 2014. Are you ready?