IRS to Create Repair vs. Capitalization Guidelines Specific to Retail Industry


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

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

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