Academic journal article Journal of Accountancy

Effective Date of Tangible Property Regs. Delayed

Academic journal article Journal of Accountancy

Effective Date of Tangible Property Regs. Delayed

Article excerpt

The IRS delayed the mandatory effective date of temporary regulations it issued m December 2011 governing whether tangible property expenses can be deducted or have to be capitalized (T.D. 9564). The temporary regulations originally were to apply to tax years beginning on or after Jan. 1, 2012. In response to numerous comments from taxpayers, in December 2012 the IRS amended the temporary regulations to make them apply to tax years beginning on or after Jan. 1, 2014, instead, but will allow taxpayers to apply the temporary regulations for tax years beginning on or after Jan. 1, 2012, and before the applicability date of final regulations. This makes the use of the temporary regulations optional until 2014. The IRS expects to finalize the regulations in 2013. In Notice 2012-73, the IRS said the final regulations also are expected to apply to tax years beginning on or after Jan. 1, 2014, although taxpayers may choose to apply them to tax years beginning on or after Jan. 1, 2012.

The IRS, recognizing that many taxpayers are expending resources to comply with the temporary regulations, also announced in Notice 2012-73 that when the final regulations are published, the following rules will be revised to simplify them:

* The de minimis rule in Temp. …

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