IRS issues Large Business & Industry (LB&I) Directive Affecting Repair vs. Capitalization


On March 16, 2012 the Internal Revenue Service (IRS) issued a Large Business & Industry (LB&I) Directive for taxpayers directly relating to the temporary regulations “Repair Regulations”. The IRS states that “This directive applies to the exam activity relating to positions taken on original returns relating to the following issues.”1. Whether costs incurred to maintain, replace, … Read More

Release of the new Temp Regs. Under 263(a)


The biggest news that came out over the last month was the long awaited Temporary Regs under 263(a). This clarified the rules related to whether a building expenditure is a capital improvement or can be a repair expense. However, one of the most significant rules that has changed under these Regs is in regards to … Read More

Capitalization vs. Repairs – Audit Techniques Guide


The IRS recently released its Audit Techniques Guide related to issue of Capitalization vs. Repairs. This issue has received a significant amount of attention by the IRS over the last couple of years as many taxpayers have filed for Changes in Accounting Method to take advantage of missed deductions. Because the amount of deductions can … Read More