TJT Client Advisory Services

Update to Repair and Capitalization Regulations

On September 13, 2013, IRS issued long-awaited final regs providing guidance on the updated repair regulations issued earlier this year. These important new regs will affect virtually all taxpayers that acquire, produce, or improve tangible property. The final regs clarify and expand the standards in the current regs.   The final regs generally apply to tax years beginning on or after Jan.1, 2014. However, certain provisions only apply to amounts paid or incurred in tax years beginning on or after Jan. 1, 2014.

If you have depreciable property of any significance then you may wish to contact our office to see how these repair regs affect your situation.  As they are very complicated and may affect each business or individual differently, we will look at each client on a case by case basis.