Final Repair Regulations are Out!! Excitement Reigns!

Your Guide to State, Local, Federal, Estate + International Taxation

Okay – maybe excitement is not really reigning on the new repair regulations that were just released by the IRS on Friday.  I may be better able to determine the actual excitement factor when I review them, but since a major tax deadline is on Monday, September 16th, the perusal is not working themselves into my weekend plans.

These regulations have been anticipated for some time and should provide guidance on the application of sections 162(a) and 263(a) to amounts paid to acquire, produce or improve tangible property.

According to the preamble, the final regulations:

• Clarify and expand the standards in the current regulations under sections 162(a) and 263(a)

• Replace and remove temporary regulations under sections 162(a) and 263(a) and withdraw proposed regulations that cross referenced the text of those temporary regulations

• Include final regulations under section 167 regarding accounting for and retirement of depreciable property and final regulations under section 168 regarding accounting for property under the Modified Accelerated Cost Recovery System (MACRS) other than general asset accounts
The final regulations do not finalize or remove the 2011 temporary regulations under section 168 regarding general asset accounts and disposition of property subject to section 168.  These are addressed separately.

These final regulations are effective on September 19, 2013.

If you are curious, here is a link to the final regulations.  Consider yourself forewarned – the document is 222 pages long.

Rumor on the street has it that the de minimis rule is not as useless as it was originally, but that it is not much improved.

By Donna H. Laubscher, CPA


  1. […] Treasury Department and Internal Revenue Service released final tangible property regulations (Click here for an overview.). These regulations, which are generally effective  for tax years beginning on or after January […]