IRS final regs on tangible property – Safe harbors opened and expanded
Abstract: The IRS has released its final regulations on the proper tax treatment of expenditures related to tangible property, including buildings. The regs explain how property owners can distinguish between expenses (which are immediately deductible against current income) and capital expenditures (which must be recovered over time through depreciation). As this article explains, they retain many of the earlier regs’ provisions but modify several sections and create and expand some notable safe harbors. And a sidebar notes that the final regs provide some relief for certain taxpayers that don’t have their financial statements audited.