Reminder: IRS wants the nitty-gritty on upgrades and repairs
Tax season is drawing near and there’s one spot in particular you may be overlooking: your facility.
In case you’ve forgotten, the IRS revised “repair regs” for the 2012 tax year. The rules have changed for businesses reporting capital expenses and upgrades, chief among them being that the IRS wants more specificity about building improvements.
Listing the property alone won’t cut it anymore and doing so could invite extra attention from the feds. Facility systems like HVAC, plumbing, and elevators/escalators must be specified.
Track down receipts
Under the new regs, all categories of materials and supplies can be deducted in the year they’re bought, instead of year they’re used, which can make for a short-term cash boost.
So now’s the time to talk to your facility manager(s) and track down receipts from their small improvements and repairs, in addition to information on the larger projects that were taken on over the past year.
Have you been keeping the revised repair regs in mind this tax season? What are you doing differently to adapt? Let us know in the comments below.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
The Financial Accounting Standards Board (FASB) is calling on publicly traded companies to report employee compensation. And that’s n...
Not all companies handle payroll records the same way. Firms may keep data in multiple systems — payroll, HR, timekeeping and the gen...
The Biden administration is planning to add another reporting requirement for publicly traded companies. This time it’s taxes paid to...
Employers located or doing business in the U.S. Virgin Islands may avoid the 2026 FUTA credit reduction flagged earlier this year. The terr...
Heads up: Accountants will no longer enjoy a 45-day grace period to file financial reports after completing an audit. The Public Company...
Federal rulemakers are requiring more transparency and detail in companies’ audits. Turns out all that extra detail is exactly what i...
