Pub. 3 2013-2014 Issue 3

8 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S FEATURE ARTICLE “Because the repair regulations are so far-reaching and complex, it is vital for businesses and their advisors to become intimately familiar with their content in order to ensure accurate implementation.” Final Repair Regulations Have Widespread Impact Tax Accounting Method Changes Will Be Required O n September 13, 2013, the Treasury Department and the IRS released f i- na l regu l at ions on t he deduc t ion and capitalization of tangible assets. These regulations update previous guidance available in temporary form. The so-called “re- pair regulations” are far-reaching and will im- pact businesses in most industries—especially those with significant real estate portfolios, including banks, manufacturers, food proces- sors, real estate developers/operators, hotels, retail businesses and auto dealerships. The final repair regulations generally will apply to tax years beginning on or after January 1, 2014. In an effort to reduce controversy between taxpayers and the IRS, the repair regulations are designed to help taxpayers distinguish a cur- rent deductible repair from a capital expense. However, the guidance contained under the Robert Conner, cpa SCOTT HUMPHREY, CPA BKD