Repair Regs Update
There are important tax changes that will impact your 2014 income tax return. These changes, known as the “tangible property regulations” (TPRs), address when payments to acquire, produce or improve tangible property must be capitalized or deducted. Following these regulations is mandatory for tax years beginning on or after January 1, 2014. The regulations state that these new rules are a change in accounting method and, as such, require all businesses to file Form 3115, Application for Change in Accounting Method, even though these changes are automatically approved by the IRS. Unfortunately, the TPRs are lengthy and complex and will require a different analysis than in the past to determine whether an expenditure needs to be capitalized. These regulations also provide for new annual elections that are available for 2014. While we will advise you on the making of the annual elections, we require that you review your income tax returns in detail regarding these new annual TPR elections for final acceptance as many of the elections are irrevocable with respect to that tax year.
This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.
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