Perkins Publications

Tax Bulletin November 2013: the New “Repair” Regulations

Act Now or Pay Later:
Unraveling the New “Repair” Regulations

By Trent Baeckl, CPA

Overview
The road to the final regulations has been an arduous one, and has involved significant revisions as the IRS solicited and received feedback. The good news is the IRS listened and considerably altered many aspects from the temporary regulations. The bad news is the regulations as issued still have an unusually large scope and will affect taxpayers in numerous ways. We estimate that the average business will need to make 4-6 changes in their accounting method to comply with the regulations. The purpose of the regulations was to accumulate and formalize numerous court cases on the capitalization of tangible property, and to provide examples of how to implement the 200+ pages of regulations. The following discussion provides an introduction to the most common issues that will need to be addressed.

.

DOWNLOAD