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 the Temporary Repair vs. Capitalization Regulations that were released on December 23, 2011. The IRS has so far stated the following sections may be changed when they are finalized:
    • Dispositions: §§ 1.168(i)-1T and 1.168(i)-8T;
    • De Minimis Rule: § 1.263(a)-2T(g);
    • Safe Harbor for Routine Maintenance: § 1.263(a)-3T(g)
    • There is further indication there could be relief for small businesses
  • The effective date of the temporary repair vs. capitalization regulations will change from January 1, 2012 to January 1, 2014
  • Taxpayers will have the option to apply the temporary or final regulations to tax years beginning on or after January 1, 2012 through the end of 2013

» View the IRS Notice 2012-73

Other recent news involves how the Repair Regulations affect the GAA. For some clients, this will require compliance to as many as 19 different Automatic Accounting Method Changes.

» Read More on the GAA Regulations

Action Step: To see if you are a good candidate for the newly modified GAA rules for Repair vs. Capitalization, call us today or visit and answer a few questions to see if you are eligible.

This article was published in Accounting Today on Nov 21, 2012
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