Capitalization Rules: Building Systems

Posted on 02.20.12

Author: Scott Zickefoose, CPA

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.

Additional Resources:

Article 1: Capitalization Rules

Article 2: Capitalization Rules - Acquisition of Real Property

Article 3: Capitalization Rules-Applying Repair Expenses to Personal Property

Aricle 4: New Capitalization Rules - Rotable Spare Parts

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.

Posted by: Scott Zickefoose, CPA, CM&AA

Scott Zickefoose works with both large and mid-market clients in the real estate, construction, and manufacturing industries, as well as with private equity firms and emerging businesses. He works closely with his clients to identify tax planning and savings opportunities.  His experience includes single and multi-state corporate and flow-through tax planning and compliance, corporate tax provisions (FAS 109 and FIN 48), and individual income taxation. Scott is a member of the Keiter Merger and Acquisition team and Future Leaders group.

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