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

Accounting method changes considerations