TAX ALERT: IRS Finalizes Regs. Governing Disposition of Depreciable Property


Issued August 15, 2014

The regulations regarding the treatment of tangible property and dispositions/partial-dispositions was finalized on Friday. The IRS made only a minor change in which they changed the calculation for disposition from using the “consumer product index” to the “producer product index.” It was expected that the IRS would extend the prior disposition election through 2014, this was not incorporated into these final regulations, rather further guidance is expected to update Rev. Proc. 2014-17 I.R.B. 2014-12, 661 (TAXDAY, 2014/03/03, I.1), to provide accounting method change guidance for compliance.

The anticipated extension for prior year disposition is a taxpayer friendly opportunity to dispose of assets currently being depreciated that have been removed, retired, sold, or destroyed in prior years. After 2014, disposition losses will only be allowed in the current year, on a timely-filled return.


Understanding the Final Treasury Regulations Governing the Tax Treatment of Tangible Property

Thurs. Sept. 25, 12:00-1:00 PM EDT

The presentation is designed to give clarity and awareness to the preferred method of depreciation and capitalization of repair & maintenance items, a property’s building systems and the proper handling of assets after renovation or retrofit. Register Here


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