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IMA Tax Policy Blog

Repair versus capitalization, depreciation changes will affect 2016 business returns

From IMA member Plante Moran . . .

Every taxpayer that uses tangible real or personal property in a business needs to understand the tax rules relating to the distinction between a repair or capital expenditure, as well as the depreciation of those capitalized expenditures and other depreciable assets that are purchased or produced.

This briefing covers:

  • Recent developments relating to repair, capitalization, and depreciation as embodied in the final tangible property regulations
  • Significant changes to depreciation provisions, such as bonus depreciation and the Section 179 allowance, made by the Protecting American from Tax Hikes Act of 2015 (PATH Act)

Many of these changes first went into effect in 2016 and will need to be considered when preparing 2016 returns.

Read the full alert here.

Source: Plante Moran, an IMA member company