The IRS has finally released new regulations governing the capitalization of repairs to tangible property. Distinguishing between deductible repairs and capital expenditures is never easy. These wide ranging rules may be the biggest change in fixed asset accounting since the advent of ACRS/MACRS. This course will address the new temporary and proposed regulations effective for tax years beginning on or after January 1, 2012, and may necessitate filing a change in accounting method.
nderstand critical new rules that apply to manufacturers, retailers, real estate companies and other businesses.
General framework of the new regulations
Amounts paid to acquire or produce tangible property
Improvements to property
Materials and supplies
Rentals and leased property
Depreciation changes, including the elimination of group accounts
Likely changes in accounting methods and Section 481 adjustments