The Internal Revenue Service and Treasury Department published in the
\nFederal Register temporary regulations that provide guidance to taxpayers on
\nthe treatment of amounts paid to acquire, produce or improve tangible property
\nand regarding the accounting for, and dispositions of, property subject to
\ndepreciation. These regulations provide objective standards and bright-line
\nrules intended to simplify compliance with the capitalization provisions
\ncontained in section 263(a) of the Internal Revenue Code.<\/p>\n
The temporary regulations generally are effective for expenditures made on
\nor after Jan. 1, 2012, and therefore these regulations do not affect taxpayers’
\n2011 tax returns.\u00a0 The IRS and Treasury Department anticipate publishing
\nadditional guidance that will advise taxpayers regarding how to obtain
\nautomatic consent to change to a method of accounting provided in the temporary
\nregulations for taxable years beginning on or after Jan. 1, 2012.\u00a0 These
\nautomatic consent requests may be filed beginning with taxpayers’ 2012 tax
\nreturns.\u00a0 Taxpayers may not request a change to a method described in the
\ntemporary regulations on their 2011 tax returns.<\/p>\n
The temporary regulations also were released as a notice of proposed
\nrulemaking, offering taxpayers the opportunity to comment on the rules.
\nWritten comments are requested by March 26, 2012, and a public hearing on the
\nregulations is scheduled for April 4, 2012.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Internal Revenue Service and Treasury Department published in the Federal Register temporary regulations that provide guidance to taxpayers on the treatment of amounts paid to acquire, produce or improve tangible property and regarding the accounting for, and dispositions of, … Continue reading