New Capitalization Rules: Applying Repairs to Personal Property

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On December 23, 2011 the Treasury Department, together with the Internal Revenue Service, released further guidance related to taxpayers’ capitalization policies. It had been over two years since the service released guidance for taxpayers as it relates to their capitalization policies. These temporary regulations are in effect for amounts paid or incurred on or after January 1, 2012.

In article 3 of our 4 part series, we focus on the new capitalization regulations under Section 263(a) and how they relate to personal property.
Article 3–New Capitalization Rules: Applying to Repairs to Personal Property

Capitalization Rules Series:

Article 1: Capitalization Rules – Building Systems

Article 2: Capitalization Rules – Acquisition of Real Property

Article 4: New Capitalization Rules: Rotable Spare Parts

About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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