Implementing the Repair Regulations in your Transportation Business

October 1, 2014|Tiffany Piper

For years, taxpayers, along with their accountants, have faced the challenge of distinguishing between capital improvements and repair and maintenance expenses. In 2011 the IRS issued temporary regulations that created guidelines for treatment of these expenditures, along with the proper treatment of materials and supplies. In addition, the regulations covered other issues involving the capitalization of tangible property and also provided the opportunity to write off all or a portion of an asset when disposed of.

In September of 2013, the IRS issued the final regulations which are effective for taxpayers with taxable years that start on or after January 1, 2014. The new regulations provide guidance on materials and supplies, capital expenditures, repairs and maintenance, improvements to property and amounts paid to acquire property. On the positive side, we now have some guidance on how to handle these types of costs, but these new regulations are very complex and fact specific with no bright line rules. These regulations will impact almost all taxpayers in any industry, including transportation.

Download the white paper for a summary of the new regulations and how they will impact your transportation business.

To learn more, download the full white paper/report.