TPR Compliance Services
The Department of Treasury issued their final treasury regulations governing the proper tax treatment for repair and maintenance expenditures (a.k.a, Tangible Property Regulations or “TPR Compliance Services”) on September 13, 2013. The final treasury regulations replace the temporary regulations previously issued in December, 2011. These final treasury regulations are meant to provide further clarity and reduce controversy over the determination of whether an expenditure may be currently deducted as a repair under I.R.C. § 162(a) or must be capitalized under I.R.C. § 263(a).
TPR Compliance is applicable to businesses in all industries that acquire, produce, replace, or improve tangible property. Application of the new repair regulations requires an in-depth understanding of various tax cases, circumstances that must be met, and the regulations themselves.