Thomson Reuters released a report on the IRS’s new regulations impacting taxpayers who acquire, produce or improve tangible property.
The report gives an overview of these new capitalization regulations, concerning Code Sec. 162(a) and Code Sec. 263(a), their widely applicable new rules, and how they are to be applied in practice.
“There is much for businesses to be pleased with in the final regs,” said Robert Trinz, a tax analyst at Thomson Reuters and an author of the report, in a statement. “For example, under safe harbor elections, many businesses may be able to deduct their outlays for lower-cost assets, materials and supplies; and building owners may be able to deduct routine maintenance.”
The report is available for free download here. Additionally, Thomson Reuters offers guidance on the ruling via Federal Tax Coordinator and RIA Federal Tax Handbook and training via the Tax Update: New Capitalization Regulations and Capitalize or Deduct: The Final Regulations.
A full list of resources is also available in the report.