Recently, the IRS and US Treasury released a revision to Section 263(a), the Tangible Property Regulations, which modified the rules related to the acquisition, improvement, and maintenance of tangible property. These regulations are intended to help businesses differentiate deductible maintenance expenses from expenses that must be capitalized. These regulations have presented several new opportunities for tax savings in that many items and services related to the acquisition and maintenance of tangible property can now be expensed. Another significant change is that the regulations are now allowing the disposition of structural components based on useful life and depreciation.
With these new regulations taking effect January 1, 2014, it is important that businesses across the country make changes to their accounting methods. There are many new opportunities to claim deductions and to capture losses of disposed items. Fandl can assist your business in reviewing current methods and policies, and identifying savings opportunities relevant to the recent changes. We will also work with you to develop a strategy to take advantage of these regulations moving forward.