Tax Law and News What You Need to Know About Repair Regulations Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Mike D'Avolio, CPA, JD Published Jun 26, 2017 1 min read Chances are you have clients who need more information on the somewhat complicated tangible property or repair regulations. The tax code allows an owner to deduct all ordinary and necessary expenses incurred to carry on a trade or business, including the costs of materials, supplies, repairs and maintenance. However, the taxpayer is required to capitalize the costs of acquiring, producing and improving tangible property, regardless of the size or the cost incurred. On Sept. 17, 2013, the U.S. Department of the Treasury issued regulations that combined existing case law and other authoritative sources into formal guidance to help determine whether costs are currently deductible or need to be capitalized. These regulations also provide some simplifying provisions and elections. Please refer to the IRS’ Tangible Property Regulations – Frequently Asked Questions for a recap and explanation of these repair regulations. Previous Post IRS Reopening Preparer Tax Identification Number (PTIN) System Next Post July 2017 Tax and Compliance Deadlines Written by Mike D'Avolio, CPA, JD Mike D’Avolio, CPA, JD, is a tax law specialist for Intuit® ProConnect™ Group, where he has worked since 1987. He monitors legislative and regulatory activity, serves as a government liaison, circulates information to employees and customers, analyzes and tests software, trains employees and customers, and serves as a public relations representative. More from Mike D'Avolio, CPA, JD Comments are closed. Browse Related Articles Tax Law and News 2014 Filing Requirements – Tangible Property Regulations/Change in Accounting Method Tax Law and News IRS Raises Tangible Property Expensing Threshold From $500 to $2,500 Tax Law and News Oil and Gas Tax in a Nutshell – Part 1 Tax Law and News Treasury, IRS Issue Proposed Regulations on Charitable Contributions and State and Local Tax Credits Tax Law and News Sales tax on portable toilet rentals Tax Law and News Recent Tax-Favored Treatment for Small Business Tax Law and News Home Energy credits under the Inflation Reduction Act Tax Law and News Guidance for Adv. Manufacturing Investment Credit Tax Law and News Writing Off Startup Costs: Make Sure Your New Business Clients Don’t Miss Out Tax Law and News Oil and Gas Tax in a Nutshell – Part 2