The U.S. tax code is an evolving landscape, especially when it comes to sustainability and energy-efficient housing. That's why IRS Notice N-2023-67 has become a focal point for professionals in the construction and real estate industries. If you're wondering what this notice entails and how it can affect your business or personal finances, you're in
Tax court decisions, which have changed the way companies treat improvements to tangible property, are generating significant tax benefits for many business owners.
To put it simply, the IRS has placed new regulations on what you can expense and what you should capitalize. For example, recent cases have allowed companies to expense substantial roof repairs or replacements upwards of $500,000 that would have previously been capitalized.
The determining factor lies in the reason for certain repair costs rather than the amount spent on those repairs. It also takes into consideration what makes up a unit of property. The new regulations are complex. ETS professionals are proficient at evaluating these rules and applying them to your tangible property and repair and maintenance items to provide a “clean start.” You benefit by gaining a significant increase in cash flow.