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Capitalization vs. Repair

Complying with the new IRS tangible Property Rules

Should you capitalize or expense amounts paid to acquire, produce, or improve Tangible Property?
Get the CapX Consulting ServicesSM  overview for more information

cpaxOur integrated team of tax and accounting method specialists, and cost segregation engineers are pleased to bring you FreedMaxick’s CapX Consulting ServiceSM  – a comprehensive program designed to bring business taxpayers into compliance with the new regulations.  The delayed effective date of January 1, 2014 and the option to early adopt sections of the temporary or final regulations before 2014 gives business taxpayers a unique opportunity to utilize these regulations for tax planning purposes.

New-regulations-could-mean-thousandsProgram Overview: CapX Consulting ServicesSM
Consultation regarding the following:

Change in accounting methods for materials and supplies
Change in accounting methods for temporary or rotable spare parts
Change in the definition of a unit of property
Improvements to tangible property
Routine maintenance safe harbor
Facilitative costs
Dispositions of tangible property
General Asset Account elections and Multiple Asset Account elections
De minimis safe harbor election

Identify previously capitalized costs that may be deductible
Identify previously deducted costs that may require capitalization
Identify changes in accounting methods and procedures
Prepare tax forms 3115 necessary to report a change accounting method(s) and the related 481(a) adjustment(s)
Prepare a report summarizing the accounting methods and changes to prior year fixed asset records
Assist with updating fixed asset records for accounting method changes

To learn more about how these regulations can be used for tax planning purposes before 2014, contact us here.

Check out our Tangible Asset Regulation Resources

Analysis of Comprehensive Repair/Capitalization Regulations– A general overview of the final regulations

Final Tangible Property Regulations Webinar

Tangible Asset and Repair Regulations Changes | De Minimus Safe Harbors

Updated LB&I Directive

CCH Tax Brief – 12/4/12 UPDATE

We may be based in New York State, however Freed Maxick provides tax services to business all over the U.S., no matter your location: Alabama, AL; Alaska, AK; Arizona, AZ; Arkansas, AR; California, CA; Colorado, CO; Connecticut, CT; Delaware, DE; Florida, FL; Georgia, GA; Hawaii, HI; Idaho, ID; Illinois; IL; Indiana, IN; Iowa, IA; Kansas, KS; Kentucky, KY; Louisiana, LA; Maine, ME; Maryland, MD; Massachusetts, MA; Michigan, MI; Minnesota, MN; Mississippi, MS; Missouri, MO; Montana, MT; Nebraska, NE; Nevada, NV; New Hampshire, NH; New Jersey, NJ; New Mexico, NM; New York; NY, North Carolina, NC; North Dakota, ND; Ohio, OH; Oklahoma, OK; Oregon, OR; Pennsylvania, PA; Rhode Island, RI; South Carolina, SC; South Dakota, SD; Tennessee, TN; Texas, TX; Utah, UT; Vermont, VT; Virginia, VA; Washington, WA; West Virginia, WV; Wisconsin, WI; Wyoming, WY. We Serve all 50 States.

CONTACT US to learn more.

ABOUT US: Freed Maxick CPAs is Western and Upstate New York’s (NY) largest public accounting firm and a Top 100 firm in the U.S. Freed Maxick provides audit, tax and consulting services to closely-held businesses, public (SEC) companies, not-for-profits and governmental entities in Buffalo, Rochester, Syracuse, Albany and NYC, New York.