Repair regulations - Revised effective date for temporary regulations 

December 14:   The Treasury Department and IRS today released for publication in the Federal Register “technical amendments” to temporary regulations (December 2011) on a number of issues concerning tangible assets, including the deduction and capitalization of repair expenses related to tangible property—i.e., the “repair regulations.”

As anticipated, today’s release [PDF 27 KB] basically reflects guidance provided by the IRS in Notice 2012-73 (November 2012), and reiterates that the temporary repair regulations will apply to tax years beginning on or after January 1, 2014, but that taxpayers may choose to apply the temporary regulations for tax years beginning on or after January 1, 2012.


Today’s technical amendments also state that taxpayers electing to apply the temporary repair regulations to tax years beginning on or after January 1, 2012, may continue rely on the automatic procedures for obtaining consent from the IRS Commissioner to change a method of accounting.


The technical amendments will appear in the Federal Register on Monday, December 17, 2012.

Final regulations expected in 2013

Notice 2012-73 stated that Treasury and the IRS:


  • Expect to issue final regulations regarding the deduction and capitalization of expenditures related to tangible property in 2013
  • Anticipate that the final regulations will contain changes from the 2011 temporary regulations
  • Anticipate that the final regulations will apply to tax years beginning on or after January 1, 2014, and will permit taxpayers to apply the final regulations to tax years beginning on or after January 1, 2012

See TaxNewsFlash-United States: IRS to amend repair regulations; final regulations expected in 2013




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