Expense vs Capitalize? The New Regulations
Duration: 90 Minutes
The question is not "what is new?" but "what is not new?" The world of acquiring, repairing, renovating, and improving a building has changed. In 1986, dividing a building into its various components was "out-lawed." As time went by, building owners were able to have Engineering Studies performed and values were assigned to various components of the building for depreciation purposes. We are now in 2016 and the IRS has finalized their Tangible Property Regulations and we have NEW RULES. Instead of components, we have "Building Systems" and "Units of Property."
Objectives of the Presentation
At the end of this webinar you will be able to determine:
- When building a building, how to separate the costs between Building Systems
- If a change to a Building System is a cost to be expensed or is required to be capitalized
- If a change to a Unit of Property is a cost to be expensed or is required to be capitalized
- What elections are still available to you?
In this Session you will learn the definitions of:
Why Should you Attend
- Maintenance vs. Improvements
We now have NEW RULES and instead of components, we have "Building Systems" and "Units of Property." Those persons/companies that acquire or hold real estate may have elections to make, and new definitions for the improvements, renovations, adaptations, and betterments of their buildings. This brings us to the new rules on when an amount may be expensed or is required to be capitalized.
The session will discuss on:
Who can Benefit
- Building Systems
- Unit of Property
- Safe Harbors
- Tax Department, Tax managers
- Accounts payable professionals, Accountants
- CFO, VP Finance