Repair Regulations
In 2013 the IRS issued final rules, commonly referred to as the “repair regulations”, which provide guidance that determines whether and when a business must capitalize costs to acquire, maintain, or improve tangible property. Under these new repair regulations, taxpayers may realize tax savings by deducting rather than capitalizing certain repair expenses. As part of this study we properly classify applicable costs and also file the associated request with the IRS to implement the change.
Areas We Analyze
Assessment of accounting methods and applicability
Material and supply analyses, including spare parts
De minimis rule assessment and implementation
Unit of property determination
Capitalization policy standardization
Repair and maintenance identification
Routine maintenance safe harbor analysis
Disposition and retirement of components analysis