The decisions about whether to expense or capitalize a repair, renovation or upgrade to your property has become more complicated, due to new IRS “temporary” regulations.
The recently issued regulations help define the determination on whether or not a repair, renovation, or upgrade may be expensed or if it must be capitalized and depreciated over a period of years. Having to capitalize repair costs could significantly impact your tax liabilities. In addition, these new regulations are especially important because of the reduced amount that can be immediately expensed through IRC 179 or bonus depreciation.
Although the regulations are characterized as “proposed” and “temporary,” the fact is they are now in effect, and you will need to know how they will affect you before filing your next tax return.
Let us help you understand these complex new regulations.
Tax partner Mike Koppel will be hosting a FREE webinar to explain how the “repair regulations” work, how they will be applied, and ways you may even be able to take advantage of them to reduce your taxes.
Please join us on August 9th by registering for this informative webinar by clicking here.