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

Establishing Your Accounting Firm On Social Media

Establishing your accounting firm’s voice on social media should be a top priority. If your firm doesn’t have a brand guide that includes its tone of voice, now is the perfect time to create one. It doesn’t have to be a full-blown brand guide⁠—just something that helps to establish and maintain a consistent brand voice.

Read More »
employee retention tax credit scams

How to avoid employee retention tax credit scams

A survey by the National Federation of Independent Business (NFIB) found that only 4% of small business owners are “very familiar” with the Employee Retention Tax Credit program. Furthermore, only 32% said they were “somewhat familiar” with the incentive. Scammers are taking advantage of this unfamiliarity to collect high fees from business owners. Unscrupulous companies

Read More »
accounting firms

Tips for Accounting Firms looking to get started on Social Media

Getting started on social media can be confusing and hard to understand. Especially for accounting firms that keep putting it off. Yet it truly is not as bad as it seems. Trust me. I manage over 20 social accounts, many of which I created from scratch. With the busy season behind us, now is the

Read More »

Contact Us