Proposed regulations on capitalization of tangible assets.

• Position: IRS Update - Brief article

To quell an area of controversy, the IRS issued proposed regulations clarifying the treatment of expenditures incurred in selling, acquiring, producing or improving tangible assets.

The controversy surrounds whether taxpayers are required to capitalize certain expenditures as an improvement, or take an immediate deduction as necessary repair and maintenance expenses.

The proposed regulations expand the standards in the...