Happy Valentine's Day IRS! One could argue who gave me a better Valentine's Day present - my wife, kids, or the IRS. It may have been Friday the 13th, but it felt like love when the IRS finally succumbed to the repeated pressures from taxpayer and preparer advocate groups such as the AICPA to formally offer relief to certain small business taxpayers from filing Form 3115, Application for Change in Accounting Method, this year. If you haven't followed the news lately, the 2014 tax filing season is slated to be a nightmare due to the impact of the Affordable Care Act (“ACA” or "Obamacare") and IRS Final Regulations regarding Deduction and Capitalization of Expenditures Related to Tangible Property (the “Repair Regs”). If you think this doesn't apply to you, think again. If you own a rental property or small business, these Repair Regs apply to you. As such, prior Rev. Proc. 2015-20 issued on February 13, 2015, the IRS pretty much expected you to file the complex Form 3115. If you have a reputable CPA, they would know this and likely pass the increase in time to prepare this complex form onto you. So Happy Valentine's Day to all of my "small business" clients, you are off the hook! The new simplified procedure is generally available to small businesses, including sole proprietors, with assets totaling less than $10 million or average annual gross receipts totaling $10 million or less. Now before you celebrate too much, make sure your Capitalization Policy is in place and you are compliant with the Repair Regs. We hope you had a nice Valentine’s weekend!
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Please take a look at the memo we've put together on the Repair Regs:
Follow John on Twitter @johnsullivancpa
Keep up with Sullivan Strategic on LinkedIn
Like Sullivan Strategic on Facebook
Please take a look at the memo we've put together on the Repair Regs:
| deducting_and_capitalizing_expenses_(repair_regs_update).pdf |
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