Report Addresses New IRS Capitalization Regulations

Thomson Reuters has released a report on the IRS’s important new regulations — dealing with Code Sec. 162(a) and Code Sec. 263(a) — that will impact virtually all taxpayers who acquire, produce, or improve tangible property.

“There is much for businesses to be pleased with in the final regs,” said Robert Trinz, a tax analyst at Thomson Reuters and an author of the report.  “For example, under safe harbor elections, many businesses may be able to deduct their outlays for lower-cost assets, materials and supplies; and building owners may be able to deduct routine maintenance.”

The special report provides an overview of the new capitalization regulations, their most widely applicable new rules, and how they are to be applied in practice.  The report is available for download at no cost at

Thomson Reuters also offers guidance and training on the ruling.  For guidance, visit Federal Tax Coordinator and RIA Federal Tax Handbook.  For training, visit Tax Update: New Capitalization Regulations and Capitalize or Deduct: The Final Regulations.  A complete list of resources is available in the report.

The report is an example of the information available on Thomson Reuters Checkpoint, which provides research, news, analysis, and productivity tools to tax, audit, accounting, legal, trade, and finance professionals.  Other recent Checkpoint reports include:

·Newly Updated Timeline of Health Care Reform Provisions

·Year-End Tax Planning for 2013