On December 23, 2011, the IRS and Treasury released new temporary regulations addressing when costs are required to be capitalized to tangible property or may be deducted as repair and maintenance costs. The new regulations replace proposed regulations issued in March 2008. On March 7, 2012, the IRS issued two revenue procedures (Rev. Proc. 2012-19 and Rev. Proc. 2012-20) that provide taxpayers with rules for filing a variety of accounting method changes under the new (December 2011) “repair” regulations. The new repair regulations are complex. They contain opportunities as well as traps for the unwary. This period of instruction will help taxpayers apply the rules in order to spot opportunities and avoid risk areas. This live audio conference will describe the technical rules including the new rules for unit of property and other specific rules (routine maintenance safe harbor; de minimis rule). Additionally, we will describe the procedural rules surrounding the implementation of the new repair regulations. Finally, we will discuss possible financial statement issues and suggested next steps to comply and take advantage of the new regulations.
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