Tangible Property Regulations

Tangible Property Regulations

Four buildings looking towards the sky for tangible property regulations.

The new tangible property regulations mark the largest change to tax laws in more than 25 years. Mandatory beginning in 2014, the broad-reaching regulations affect almost every business because they apply to both real and personal property. Complying with the new rules is expected to be complex.

CBIZ tangible property experts help clients navigate the nuances of the new rules. We carefully consider each client’s business situation to determine the proper treatment of real and personal property. Our tax professionals evaluate your business expenditures for materials and supplies, repairs and maintenance, asset purchases, and the effect on subsequent depreciation in order to create a tangible property strategy that provides maximum value to your business.

Opportunities to Write Off Capitalized Expenditures

As part of the new rules, companies may have the opportunity on 2014 tax returns to write off certain previously capitalized expenditures.  These write-offs may be available because previously capitalized expenditures are no longer required to be capitalized under the new rules.  Alternatively, building components that have been replaced but are still being depreciated on the company’s books can be written off with a late partial disposition election. CBIZ can review your fixed asset records to determine if there are capitalized expenditures that are eligible for a tax loss on the undepreciated basis. If we determine that such expenditures are still on the books, we will help you prepare and file the necessary Application for Change in Accounting Method (Form 3115) that allows you take the tax loss.

Committed to Client Service

A number of the changes within the tangible property guidelines may also trigger the need for an Application for Change in Accounting Method. Our professionals ensure that all of your Form 3115s are accurate and complete. Additionally, we provide guidance on how to improve your internal controls to ensure future compliance with the new regulations.

Rules are subject to change, and our professionals will continue to update you on any modifications that may be made to the tangible property regulations through our tax alerts and articles and insights. Our commitment to informing our clients about the regulatory changes that affect them is only one of the reasons we're among the nation's leading providers of accounting, tax and business solutions.

Lawrence A. Rosenblum

Managing Director

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