New Capitalization Rules: Rotable Spare Parts

Posted on 07.20.12

By Jennifer Flinchum, CPA, CFP® and 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.

In the final article of our 4 part series, we focus on the new capitalization regulations under Section 263(a) and how they relate rotable spare parts.

Article 4: New Capitalization Rules - Rotable Spare Parts

Past articles:

Article 1: Capitalization Rules - Building Systems

Article 2: Capitalization Rules - Acquisition of Real Property

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

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: Jennifer F. Flinchum, CPA, CFP®

Jennifer partners with her corporate and individual clients to identify tax planning and credit opportunities while managing liability and risk. She applies her significant experience in tax compliance and strategic consulting for both privately held businesses and their owners. Her expertise also includes tax accruals, mergers and acquisitions, multi-state tax issues, audit controversy and executive the lead partner of Keiter’s Family, Entrepreneur, and Executive Advisory Services Team and a Manufacturing, Retail and Distribution industry team leader.

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