KBKG Tax Insight: IRS Provides Extension to Claim Missed Repair Deductions on 2016 Returns

12/27/2016News, Recent News, Repair Regulations, Tax Insight

The recently released IRS Notice 2017-6 extended a special eligibility rule for taxpayers making an automatic change of accounting method providing an opportunity to continue to take advantage of the Tangible Property Regulations (TPRs) on 2016 tax returns. KBKG Insight: Current rules under Rev. Proc. 2015-13 prevent taxpayers from making an automatic change in accounting … Read More

IRS provides 1 year extension to claim missed repair deductions on 2015 returns

06/03/2016News, Recent News, Repair Regulations, Tax Insight

The recently released Rev. Proc. 2016-29 details new procedures for automatic accounting method changes, as discussed in a previous KBKG Tax Insight, and effectively provides a one year extension for taxpayers to implement many portions of the Tangible Property Regulations (TPR). Taxpayers are generally not permitted to make an automatic method change if they made … Read More

Retail/Restaurant Industry Safe Harbor Under Tangible Property Regulations

01/13/2016Cost Segregation, News, Repair Regulations, Tax Insight

The IRS recently issued Revenue Procedure 2015-56 providing a safe harbor for certain taxpayers operating retail or restaurant establishments for determining whether expenditures incurred to “remodel” or “refresh” their property can be expensed under the Tangible Property Regulations released in 2013. Generally, the safe harbor benefits those enhancing the physical appearance and layout of their … Read More

Repair Regs – Another solution to “Elect-out” of Rev. Proc. 2015-20 to preserve missed deductions

08/21/2015Repair Regulations, Tax Insight

The IRS has recently written on their website that eligible taxpayers may elect out of Rev. Proc. 2015-20 by filing a statement with their 2014 tax returns indicating their qualifying trade or business is not applying the simplified procedure of Rev. Proc. 2015-20. Qualified small business taxpayers who accept the relief of Rev. Proc. 2015-20 … Read More

IRS Releases New Draft Form 3115

07/20/2015Repair Regulations, Tax Insight

On July 15th, The IRS posted onto its website an early released draft of Form 3115, Application for Change in Accounting Method. Form 3115 is used for accounting method changes, including complying with the Tangible Property Regulations (“TPRs”) as well as making depreciation adjustments resulting from Cost Segregation studies. The current version of Form 3115 … Read More

Tangible Property Final Regulations FAQ

03/09/2015Repair Regulations, Tax Insight

Section 162 of the Internal Revenue Code (IRC) allows you to deduct all the ordinary and necessary expenses you incur during the taxable year in carrying on your trade or business, including the costs of certain materials, supplies, repairs, and maintenance. However, section 263(a) of the IRC requires you to capitalize the costs of acquiring, … Read More

Filing Relief Issued on Tangible Property Regulations under Rev. Proc. 2015-20

02/16/2015Repair Regulations, Tax Insight

Numerous tax professionals have struggled with the compliance requirements under the final Tangible Property Regulations (TPRs) and when Form 3115, Application for Change in Accounting Method, is required. In response to public concerns, the IRS issued Rev. Proc. 2015-20 providing a simplified method of compliance for small business taxpayers. The new revenue procedure allows small … Read More