Boning up on the new repair regs – IRS guidance can help you and your clients reduce taxes

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Abstract: In December 2011, the IRS issued temporary guidelines addressing the tax treatment of expenditures made to acquire, produce or improve tangible property. Contractors should familiarize themselves with these regulations because: 1) they affect the tax treatment of investments in their own buildings, and 2) they may provide opportunities to help clients reduce their tax bills. This article offers advice on how to determine whether an expense should be capitalized or deducted; a sidebar offers a specific example.