IRS Issues Temporary Regs on Tangible Property

Submitted by rkoreto on Fri, 12/30/2011 - 14:35

New guidance is available to taxpayers on the "treatment of amounts paid to acquire, produce or improve tangible property and regarding the accounting for, and dispositions of, property subject to depreciation," according to an IRS statement. The temporary rules will help with compliance related to capitalization provisions in IRC section 263(a).

 
As noted in the Federal Register, the new regulations also "provide guidance under section 168 regarding the accounting for, and dispositions of, property subject to section 168. The temporary regulations also amend the general asset account regulations."
 
The IRS noted that the regulations generally are effective for expenditures made on or after Jan. 1, 2012, and so should not affect 2011 tax returns. 
 
The temporary regulations were also released as a "notice of proposed rulemaking." Interested parties can provide written comments by March 26, 2012, and the IRS will hold a public hearing on the regulations on April 4, 2012.

 

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