Rev Proc 2012-19 and the unicap rules under 263A


P

Pico Rico

is there a reasonably clear explanation of all this? I find the IRS
language to be gibberish, and the couple of memos I found from the Big "N"
accounting firms is both gibberish and uninformative.


"N" used to be 8, but what is it nowadays?
 
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A

Alan

is there a reasonably clear explanation of all this? I find the IRS
language to be gibberish, and the couple of memos I found from the Big "N"
accounting firms is both gibberish and uninformative.


"N" used to be 8, but what is it nowadays?
1. To getter a better understanding of the "repair" regs published at
the end of 2011 see

http://www.bkd.com/articles/2012/ir...capitalization-of-tangible-property-costs.htm

2. To get a better understanding of the guidance (rev. procs) see

http://www.bkd.com/articles/2012/gu...with-recent-tangible-property-regulations.htm
 
M

Mark Bole

"N" used to be 8, but what is it nowadays?

Last time I checked, almost two years ago:

Big Four

Deloitte
PWC (PriceWaterhouseCoopers)
Ernst & Young
KPMG
 
M

Mark Bole

is there a reasonably clear explanation of all this? I find the IRS
language to be gibberish, and the couple of memos I found from the Big
"N"
accounting firms is both gibberish and uninformative. [...]
1. To getter a better understanding of the "repair" regs published at
the end of 2011 see

http://www.bkd.com/articles/2012/ir...capitalization-of-tangible-property-costs.htm


2. To get a better understanding of the guidance (rev. procs) see

http://www.bkd.com/articles/2012/gu...with-recent-tangible-property-regulations.htm
Here's a relatively short article I was able to muddle through:

http://www.accountingtoday.com/taxprotoday/news/Repair-Capitalization-Regulations-GAA64635-1.html
 
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P

Pico Rico

Mark Bole said:
I don't get it:

"For those not familiar with GAA rules, they stipulate that only assets
depreciated the same way can be in the same GAA (i.e. assets with the same
MACRS tax life, recovery method, convention, and effective placed in service
date). The GAA election is simply made by checking a box on the Form 4562,
and taxpayers will need to keep records of which assets are in which GAA.
Further, a GAA election must be made on a timely filed tax return (including
extensions) for the year the asset was placed in service.

In light of these changes, the IRS is allowing two years for taxpayers to
file retroactive GAA elections for assets placed in service before 2012
using the Form 3115, Automatic Change of Accounting Method form. If that
window is missed, your client might be stuck indefinitely with the adverse
consequences mentioned above so it's critical that you address this issue."





does anything need to be done for a taxpayer who owns rental property
consisting of a commercial-lease structure, parking lot, rooftop HVAC units,
etc.? All (other than land value) is being depreciated straight line since
purchase, without allocation among the various components. At some point,
the parking lot paving will need to be seal coated/repaired, some HVAC unit
will fail necessitating replacement, etc.
 

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