Expense vs Capitalize? Tangible Real Property Regulations
The question is not “what is new?” but “what is not new?”
The world of acquiring, repairing, renovating, and improving a building has changed. In 1986, dividing a building into its various components was “out-lawed.” As time went by, building owners were able to have Engineering Studies performed and values were assigned to various components of the building for depreciation purposes.
The IRS has finalized their Tangible Property Regulations and we have NEW RULES. Instead of components, we have “Building Systems” and “Units of Property.”
Those persons/companies that acquire or build improvements on real estate may have elections to make, and new definitions for the improvements, renovations, adaptations, and betterments of their buildings.
Which brings us to the new rules on when an amount may be expensed or is required to be capitalized.
In this course you will learn the definitions of:
- Maintenance vs. Improvements
Included are discussions on:
- Building Systems
- Unit of Property
- Safe Harbors
At the end of this webinar you will be able to determine:
- When building a building, how to separate the costs between Building Systems.
- If a change to a Building System is a cost to be expensed or is required to be capitalized.
- If a change to a Unit of Property is a cost to be expensed or is required to be capitalized.
- What elections are still available to you?
Owner of Dorsey & Company CPAs, PLLC 2013 dorseyandcompany.com Owner of Rock City Data Group, Inc. ( Microsoft Gold Certified Partner) 2013 rockcitydata.com Owner of The Payroll Place BS in Accounting, cum laude Arkansas State University CPA, member of AICPA and ASCPA u2013 served on various committees Microsoft Certified Professional (MCP) and Microsoft Small Business Specialist (MSBS) Microsoft Certified Systems Engineer (MCSE), graduating from Six Sigma Green Belt at Villanova ... View Full Profile