Compliance with the Repair Regulations
The IRS released final Repair Regulations in September 2013 to provide guidance on which amounts paid for materials and supplies, for repairs and maintenance, and for purchases of assets can be expensed and which must be capitalized. The final Repair Regulations apply to tax years beginning on or after January 1, 2014.
Helpful Repair Regulation Resources
- CCH Tax Briefing: IRS Releases Comprehensive Repair/Capitalization Final Regulations
- CCH Tax Briefing: Analysis of Comprehensive Repair/Capitalization Regulations
- Slides: Capitalization of Tangible Assets
- AICPA Repair Regulations Q&A
- Accounting Policy for Capitalization of Tangible Property Expenditures
Previous Client Alerts
Many tax advisors believe the Repair Regulations are the most dramatic changes in tax law to affect for profit businesses since the overhaul of the Internal Revenue Code in 1986. Complying with the law will be burdensome. Not only will many taxpayers need to file Form 3115, Application for Change in Accounting Method, for each accounting method change, but the filing will also need to be done for each separate entity, or trade or business.
WK advisors have completed many hours of research and training in order to learn the new concepts contained within the Repair Regulations. We’re posting some of the most relevant articles and resources below to help you better understand the Repair Regulations.
Please contact your WK advisor for additional guidance specific to your situation.