Applying the Tangible Property Regulations

CPAs, EAs, CRTPs

This course provides a comprehensive overview of the tangible personal property regulations finalized in 2013 and 2014, focusing on the definition of “unit of property” and the distinction between deductible repairs and capitalized improvements. It covers key capitalization categories—betterments, adaptations, and restorations—and offers practical guidance on making required accounting method changes, including the use of Form 3115 and available elections. Additional topics include income adjustments, common method changes, and the use of general asset accounts.

• Distinguish deductible repairs from improvement costs that must be capitalized
• Identify the accounting options available for materials and supplies and spare parts
• Determine what constitutes a unit of property under the final regulations
• Select the appropriate elections available under the final regulations
• Identify the various safe harbors provided by the final regulations
• Calculate Code section 481(a) adjustments
• Recognize circumstances in which general asset accounts may still be beneficial