New Capitalization Rules: Rotable Spare Parts

Posted on 07.20.12

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

Article 2: Capitalization Rules - Acquisition of Real Property

Article 1: Capitalization Rules - Building Systems