Comprehensive Repair and Cost Capitalization Regulations Affecting Contractors

Effective January 1, 2012, the IRS issued temporary regulations that will impact contractors that incur expenditures to acquire, produce or improve tangible property. All taxpayers that acquire, produce, or improve tangible property will likely have to change their method of accounting to conform to the temporary regulations.

Topics discussed will include:

• Materials and supplies
• Repairs, acquisition and transaction costs,
• De minimis rules
• Rental/leased property and improvements to property

Additionally, there will also be a discussion on subsequent guidance and procedures for applying the rules and electing changes in accounting methods.