Repair Regulations - TY 2014

[Guest Taxed]

What's going on with the new rules - repair regulations?

It is my understanding that the taxpayer will need a financial statement prepared by CPA etc at the begining of each tax year?

What would be the advantage of using the deminimus rules vs. sec. 179 expensing for small business owners?

[kcjenkins]

More detail please. What regulation are you referring to?

[Guest Taxed]

Don't have any more details except last year I seem to remember at a webinar for an accounting product they mentioned these new proposed regulations as an alternative to sec 179. I think they go into effect for 2014.

I will have to fire up the tax research and see what's new.

Thought you folks who are CPAs may know about this regulation.

[jainen]

>>What would be the advantage of using the deminimus rules vs. sec. 179 expensing for small business owners?<<

There are several temporary regulations for Sections 168 and 263. Originally they were effective for 2012, but were so confusing that IRS made the first two years optional. They are still confusing, but it's a step towards simplifying the expensing of small capital costs.

I doubt they will have much impact on the small business taxpayers served by members of this forum, at least for now. De minimus here means 1/10 of 1% of revenues, which is only $100 for $100,000 of gross receipts. As you note, it requires substantial accounting changes and documentation that may be too burdensome for small businesses.

[Guest Taxed]

That's what I understood.

But then I am not a CPA so I thought perhaps folks who are more experienced in these matters may shed some light.