By: Moshe Hildeshaim, Director of Operations, Madison SPECS
The IRS has recently confirmed the newest regulations which govern the treatment of expenses incurred in improving tangible property. The regulations determine how to break down the costs related to repairs or capital improvements. These rules will affect taxpayers who acquire or improve tangible property.
According to the new regulations, structural assets may be broken down in greater detail for future write-off benefits. When the taxpayer is determining if improvements were made, the building structure and each building system can be considered separately.
The building is evaluated and broken out into units of property (UOP) according to nine Enumerated Building Systems. Continue reading