TAX ALERT: IRS Mandates New Depreciation Regulations

The IRS has mandated that all taxpayers who incur costs to acquire, produce, or improve fixed assets adhere to new depreciation regulations. All taxpayers that this applies to are required to adopt these new regulations for the 2014 tax year. The adoption is considered an accounting method change and requires form 3115 to be filed. The preparation of this form will result in additional time and cost for all 2014 returns.

In addition to this, we recommend that all taxpayers for whom these regulations apply have a capitalization policy on record effective 1/1/2014. Below are links to two templates which you may use. The first should be used if you do not have annual audited financial statements. The second should be used if you have annual audited financial statements.

Please feel free to contact us if you have any questions.

Your trusted advisors at KatzAbosch

Capitalization Policy 1 no audit

Capitalization Policy 2 with audit


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