Over 4 million businesses in the U.S. will be affected by new regulations governing the final version of the “repair” regulations. These rules affect the “capitalize or expense” decision for the acquisition, repair or improvement of tangible property, including any materials used. Will your business be affected?
In case you missed our November 1st webinar, be sure to watch the recording now. Gray, Gray & Gray Tax Advisor Mike Koppel explains how the new “repair” regulations work, how they must be applied, and ways the new rules could impact your business. Get up to speed on the complex rules that go into effect on January 1, 2014 – just a few weeks from now!
The temporary repairs regulations, which were issued last December, will affect many businesses, regardless of what industry they cater to. Businesses have until the end of the 2013 tax year to file for a Form 3115, “Application for Change In Accounting Method,” to comply with the new complex and lengthy regulations. At the recent ABA Tax Conference, Sunita Lough, Acting Director (prefilling and technical guidance) of the IRS Large Business and International Division, provided some insight on the new regulations filing timeline. She indicated that taxpayers, who choose not to file Form 3115 in order to comply with the temporary tangible property regulations during the first year of the two year window, will not be at risk for an IRS audit as long as they do file before the end of the two years. This means that it is important for all affected businesses to file Form 3115 at some point during this two year window. Continue reading