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Postponed Confusion – IRS Delays Effective Date of New Repair Regulations

The Internal Revenue Service (IRS) has pushed back the effective date of a set of broad regulations related to repairs and maintenance, depreciation, and fixed asset capitalization.  A temporary version of the so-called ‘repair regulations’ were slated to take effect 1/1/2012.  Now, the IRS will issue final regulations in 2013 with an expected effective date of 1/1/2014.

The repair regulations will be updated to include changes to:

    • Dispositions and depreciation: §§ 1.168(i)-1T and 1.168(i)-8T;
    • De Minimis Expensing Rule: § 1.263(a)-2T(g);
    • Safe Harbor for Routine Maintenance: § 1.263(a)-3T(g).

Though the new effective date of the regulations is 1/1/2014, taxpayers may elect to apply the temporary regulations to tax years beginning 1/1/2012 and later if they choose.   Additionally, relief provisions for small businesses may be in the works, though there are currently no details available as to what that relief may be.  To view the complete IRS guidance notice, please visit