Tangible Property Regulations

In a decision that will affect almost all taxpayers, the IRS has issued final regulations affecting costs incurred to acquire, maintain, and improve tangible real and personal property. The provisions of the final regulations are simpler to understand, easier to administer, and are generally taxpayer-favorable — allowing additional deductions and standardized rules.

The Final Tangible Property Regulations include provisions for:

  • De minimis safe harbor elections
  • Safe harbors for small-business taxpayers
  • Capitalizing repair and maintenance expenditures
  • Capitalizing rotable, temporary, or emergency spare parts

The finalization of these regulations presents an opportunity for taxpayers to evaluate their current tangible property accounting methods and develop strategies to take advantage of these favorable provisions while maintaining compliance. Contact Rives today to get started.

Learn more about Tangible Property Regulations:


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