Q&A Session: Commencement Date for Implementation of the Final Treasury Regulations

I Need To Elucidate The Commencement Date For Implementation Of The Newly Released Final Treasury Regulations Governing Tangible Property. Can Someone Please Clarify This For Me?

Yes, it should be duly noted that while taxpayers have the option of applying the final treasury regulations governing tangible property back to tax years beginning on or after January 1, 2012, the final treasury regulations are generally effective for tax years beginning on or after January 1, 2014.

As a background, the final treasury regulations issued in September of 2013 replaces the temporary treasury regulations previously issued in December of 2011. As with temporary treasury regulations, the final treasury regulations have the force and effect of law on both taxpayers and the government and any deviation from these treasury regulations will require the filing of Form 8275-R entitled “Regulation Disclosure Statement” for taking a position contrary to a treasury regulation in either temporary or final form. These final treasury regulations are meant to provide further clarity and reduce controversy over the determination of whether an expenditure incurred for repair and maintenance purposes may be currently deducted under I.R.C. § 162(a) or must be capitalized under I.R.C. § 263(a).

Please let me know if I can be of further assistance to you on the scope and application of these final treasury regulations governing tangible property.

Author

Engineered Tax Services

Engineered Tax Services

Recent Posts

ertc

The Ins and Outs of the ERTC

The Employee Retention Tax Credit (ERTC) is a tax credit offered by the federal government to assist businesses in retaining their employees during economic hardships. This credit was introduced in 2020 as a response to the COVID-19 pandemic and has been extended until the last quarter of 2021.

Read More »

Cost Segregation: A Tax Strategy for Office Building Owners

As an office building owner, navigating the complex world of taxes can be a daunting task. With commercial properties subject to a variety of tax rules and regulations, it’s easy to get lost in the details and lose sight of your bottom line. That’s where cost segregation comes in.

Read More »
International Women's Day

Women Leading the Way: Lessons in Resilience and Success

Introduction As we enter Women’s History Month and celebrate International Women’s Day on March 8th, Engineered Advisory is proud to recognize the many phenomenal women who are part of our community. As a predominantly women-led organization, we value diversity in leadership. From executives to team members, we firmly believe that a diverse leadership team fosters

Read More »

Contact Us