The American Mold Builder: How the New Tangible Property Regulations Will Impact Mold Builders

After nearly a decade of issuing a long series of proposed and temporary regulations, the IRS has finally issued final regulations providing guidance to help taxpayers determine how to treat expenditures related to tangible property from a tax perspective.

Such property includes buildings, machinery, equipment and vehicles, as well as costs incurred to replace major components or substantial structural parts of a unit of property (UOP). It also includes costs that result in a UOP’s betterment, restoration or change in use.

The final regulations (IRS T.D. 9636, also known as the Repair Regs) help clear up the confusion that has existed for many years with regard to whether taxpayers can expense and deduct repair and maintenance costs, or if they must capitalize these expen - ditures. Property and costs that are expensed generally can be deducted in the year they are paid or incurred, but those that are capitalized must be...

Read the full article in The American Mold Builder | Winter 2015

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