IRS: Tangible Property Rules Expected in 2013, Likely to Make Changes

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Final rules on the accounting treatment of tangible property will be published in 2013, with changes possible in such areas as the de minimis rule, dispositions, and the safe harbor for routine maintenance, IRS says in Notice 2012-73. The agency says the final rules will apply for taxable years beginning on or after Jan. 1, 2014. However, taxpayers will be able to use the guidance as far back as taxable years beginning on or after Jan. 1, 2012, IRS says. Unveiled in December 2011, the proposed and temporary rules address whether taxpayers must capitalize their tangible property costs under tax code Section 263(a) or whether they can deduct them under Section 162(a).

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