IRS to Create Repair vs. Capitalization Guidelines Specific to Retail IndustryRecently, the IRS and the Treasury Department announced that they have accepted a request from the National Retail Federation and Retail Industry Leaders Association for guidance under the IRS’ Industry Issue Resolution (IIR) program regarding the new Repair vs. Capitalization Regulations. The purpose of the … Read More
repairs
IRS Publishes Formal Amendments to Repair vs. Capitalization Regulations
On Friday, December 14, the IRS published the amended temporary Repair vs. Capitalization regulations to incorporate the changes announced in the recent Notice 2012-73. The changes include a two year delay of the effective date of the regulations to January 1, 2014.While Notice 2012-73 indicated that taxpayers had the option to apply the temporary or … Read More
IRS Issues Notice That Delays Effective Date of the Repair vs. Capitalization Regulations
The IRS has released preliminary information regarding further changes to the Repair Regulations on November 20th through IRS Notice 2012-73. The main issues within the guidance are as follows:The final regulations related to Repair vs. Capitalization will be released in 2013 and will be effective on or after January 1, 2014.There will be changes to … Read More
Repair vs. Capitalization Regulations: Why you should elect General Asset Accounting rules
Now that the October 15 tax deadline has passed, many CPAs are turning their attention to the major changes put in place under the new “Repair vs. Capitalization Regulations”. The new rules are in effect for the 2012 tax year. For some clients, this will require compliance to as many as 19 different Automatic Accounting … Read More
Temporary Regulations Create New Applications for Cost-Segregation Studies
The AICPA recently released an article titled “Temporary Regulations Create New Applications for Cost-Segregation Studies”. It details: Expenses & Deductions, Building Improvements and Repairs, Building Component Dispositions and concluded that “There are a number of considerations to be made in applying the temporary regulations. In addition to dispositions and structural improvements, the temporary regulations prescribe … Read More
KBKG Tax Commentary on Regulations for Repairs vs. Capitalization
It has been several months since the new “Repair Regulations” were issued and many companies are still trying to figure out how this impacts their business. The IRS’s intent was to clarify the existing rules for capitalization but the overwhelming sentiment among CPAs and taxpayers is that they are too cumbersome. The IRS initiated this … Read More
AICPA Criticizes IRS Tangible Property Repair Regs
AICPA told the IRS that its proposed regulations for the capitalization & deduction of tangible property expenditures are unnecessarily complex. AICPA sent a second comment letter to the IRS with their concerns over the new regulations. AICPA believes the IRS should provide a couple of examples to guide taxpayers on the interrelationships of some of … Read More
Repair Regulations
The “Repair Regulations,” are applicable to businesses in all industries that acquire, produce, replace, or improve tangible property. Since these rules mostly affect real property, they can provide significant benefits to your clients even if cost segregation studies have already been performed. Further, the rules allow taxpayers to go back to previous years and take … Read More
Revenue Procedures 2012-19 and 2012-20
On March 7, 2012, the Internal Revenue Service (IRS) released two Revenue Procedures 2012-19 and 2012-20 as guidance for taxpayers to make changes to accounting methods in regards to the temporary regulations, “Repair Regulations,” which were released on December 23 of 2011. These two revenue procedures are effective for taxable years beginning on or after … Read More
ASCSP Board Member Comments on Recent Regulations
Gian P. Pazzia, CCSP and Principal at KBKG, Inc. works collectively with the American Society of Cost Segregation Professionals (ASCSP) to provide insights on current tax issues including ASCSP’s comments to the IRS on the Repair v. Capitalization Temp. Regs., ASCSP’s industry commentary on PECO Foods v. Commissioner and also ASCSP’s comments on the AmeriSouth … Read More
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