Search Checkpoint for guidance on implementing the tangible property regulations

Have questions on the tangible property regulations? Checkpoint has the answers!

Understanding and implementing the IRS tangible property regulations has proven to be extraordinarily challenging for businesses and their tax professionals. While the regulations include many taxpayer-friendly provisions, businesses with tangible property, repairs and maintenance or materials and supplies may need to file Form 3115 to request an automatic accounting method change.

With the potential for further developments, tax practitioners must make an informed decision about whether to move forward under the current rules, or extend affected business returns until later in the year.

Revenue Procedure 2015-20 to the Rescue?

Practitioners breathed a sigh of relief when the IRS issued Revenue Procedure 2015-20, which provided qualifying small businesses with a simplified method of complying with the tangible property regulations. The simplified method allows qualifying small businesses to adopt the regulations prospectively, beginning with the 2014 tax year, without filing a Form 3115. However, this may not be the best decision for every business, especially if the business capitalized expenses in previous years that are now deductible under the current regulations. They may be able to claim a hefty tax deduction by filing Form 3115. Businesses that use the simplified method in lieu of filing Form 3115 also generally do not receive audit protection for tax years before 2014.

Bottom line: Practitioners will want to review each business's unique set of facts and circumstances to determine whether filing a Form 3115 is in their best interests.

For practitioners addressing the current rules, Checkpoint offers a variety of helpful resources.

Guidance on Preparing Form 3115

For guidance on preparing Form 3115, download our free Special Report - Requesting Accounting Method Changes Under the Tangible Property Regulations. This special report, brought to you by PPC's Practitioners Tax Action Bulletins (PTAB), provides guidance and practical tips for preparing Form 3115 on behalf of businesses.

Subscribe to PTAB and gain access to an even more in-depth report that includes more than 45 pages of detailed Form 3115 preparation guidance, illustrated by real-life examples, sample language and filled-in forms 3115. Click here to learn about our special offer.

Guidance on Understanding and Applying the Tangible Property Regulations

Checkpoint offers a range of information to help practitioners understand and apply the tangible property regulations, including:

• In-depth expert analysis of the most complex aspects of the regulations
• Practical insights and recommendations to help businesses capitalize on opportunities created by the regulations
• Ongoing coverage of new developments related to implementing the tangible property regulations.

Sample Checkpoint Keyword Searches

The repair regulations and recent guidance cover many issues but here are some sample searches that will lead you to coverage on some of the more commonly searched topics.

On the Federal search screen, select the following sources under Editorial Materials (note: you will only be able to view and select those sources to which you subscribe): Catalyst: Tax Accounting; Elections & Compliance Statements; Federal Tax Coordinator Analysis; Federal Tax Coordinator Client Letters; PPC's Federal Tax Compliance Library; Tax Desk Analysis; Tax Planning & Practice Guides (Special Studies).

Use one of the following for keyword searching:

• repair capital expense
• repair regulations
• deductible repair
• tangible property repair
• spare parts expense
• tangible property betterments restoration
• safe harbor election repairs
• what is a unit of property.