Have You Been Wondering What’s Going on Now with the Repair Regulations?
You should be! Now that we have made it through tax season, we cannot let up off the gas pedal too quickly. If you are looking for additional tax savings, there are still opportunities out there for you. If you have not filed a Form 3115, there is still time to file. There is speculation Form 3115 will be revised in the near future so consider filing your Form 3115 soon.
Have you filed your 2014 tax return and forgot to take advantage of the repair regulations? Taxpayers have 180 days after the due date of the original 2014 tax return to amend the 2014 tax return and file an original Form 3115. This is a great opportunity for those taxpayers that were not aware of the repair regulations prior to completing their 2014 tax return.
If a taxpayer’s 2014 tax return is currently on extension, they can still file a Form 3115 by the extended due date. The deadlines for completing 2014 tax returns will be approaching quickly so it is important to consider your tax situation and finalize your tax strategy for your 2014 tax return as soon as possible.
It is also pertinent to ensure that taxpayers are continuing to comply with the new repair regulations. One way to do this would be to make sure that taxpayers have a capitalization policy in place. If they do not have a policy in place, they should address this as soon as possible. Without the capitalization policy in place, taxpayers will not be able to utilize the new de minimis standard for capitalization.
Determining if a 3115 is necessary for a taxpayer is another way to ensure that they are in compliance with the new regulations. Reviewing and scrubbing a taxpayers fixed asset listings can be a time consuming process, but it is a key part of the process and should be performed. One major benefit is that it could result in big tax savings for the taxpayer. For some, the stress and heavy workload during tax season made it hard to really focus on the 3115 process. Now that tax season is behind us and with the extension of time to file, it is the perfect time to take a look at the fixed asset listings to determine how to treat the filing of the form 3115 for taxpayers, if necessary.
One final way to help ensure that taxpayers are in compliance with the new regulations is to take the time to meet with an Anders tax advisor to discuss their options, and make sure they understand the process. Every taxpayer’s situation is going to be different so it may not be beneficial for everyone, which is why it is really important to contact an Anders tax advisor to ensure that they are in compliance going forward.
For more information about the tangible property regulations, contact your Anders tax advisor. Your advisor can assist you with questions or concerns you may have regarding the new repair regulations.