New Capitalization Rules:  Applying Repairs to Personal Property

Posted on 03.23.12

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

Past articles:
Article 2: Capitalization Rules-Acquisition of Real Property
Article 1: Capitalization Rules-Building Systems

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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