Final regulations - Text of "repair regulations" 

September 13:  The Treasury Department and IRS this morning released for publication in the Federal Register final regulations (T.D. 9636) that provide guidance on the application of sections 162(a) and 263(a) to amounts paid to acquire, produce, or improve tangible property—the final "repair regulation."

Read KPMG’s overview, initial analysis, and observations of the tangible property regulations: TaxNewsFlash-United States


Read text of the final regulations [PDF 578 KB]


According to the preamble, the final regulations:


  • Clarify and expand the standards in the current regulations under sections 162(a) and 263(a)
  • Replace and remove temporary regulations under sections 162(a) and 263(a) and withdraw proposed regulations that cross referenced the text of those temporary regulations
  • Include final regulations under section 167 regarding accounting for and retirement of depreciable property and final regulations under section 168 regarding accounting for property under the Modified Accelerated Cost Recovery System (MACRS) other than general asset accounts

The final regulations do not finalize or remove the 2011 temporary regulations under section 168 regarding general asset accounts and disposition of property subject to section 168. Instead, these are addressed in a separate notice of proposed rulemaking [PDF 309 KB].


The final repair regulations are effective on September 19, 2013 (the date when they will be published in the Federal Register).


The final regulations are 222 pages. Once they have had time to consider the implications of these final regulations, KPMG tax professionals will provide an analysis of the regulations in a future edition of TaxNewsFlash.




©2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this

Subscribe

Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.


Email your contact information.

TaxNewsFlash-United States by year