New CCH Tax Briefing Provides Guidance, Analysis for Capitalization Regulations

(RIVERWOODS, ILL., August 21, 2012) – Many questions still remain over the temporary “repair” regulations for capitalization accounting methods that were issued by the IRS more than six months ago. CCH has released a special Tax Briefing: Comprehensive Repair/Capitalization Regulations to help professionals interpret and apply these often complex regulations that affect all businesses in one way or another. CCH, a Wolters Kluwer business is a leading global provider of tax, accounting and audit information, software and services (

These temporary regulations affect all business taxpayers who acquire, produce or improve tangible property. They are effective for tax years (or costs incurred in taxable years as appropriate) beginning on or after January 1, 2012. However, the regulations are in effect retroactive, depending on the accounting method used at the time and whether it complies with the new standards.

“Nearly every business taxpayer is affected and will need to file one or more accounting method changes to bring prior transactions into compliance with the regulations,” said CCH Senior Federal Tax Analyst Ray Suelzer, JD, LLM. “Of particular importance to most taxpayers is a rule which now treats dispositions of structural components of a building, such as a roof, as a loss transaction. Taxpayers currently depreciating a previously retired component should file an accounting method change to claim a loss deduction or, alternatively, make a retroactive election to place the building in a modified accelerated cost recovery system general asset account.”

For More Information

The new CCH Tax Briefing is available by clicking here: Comprehensive Repair/Capitalization Regulations. You may also visit to access the full range of CCH Special Briefings on significant tax developments. Members of the press interested in speaking to a CCH tax analyst should contact Eric Scott at 847-267-2179, or Brenda Au at 847-267-2046,

About CCH, a Wolters Kluwer business

CCH, a Wolters Kluwer business ( is a leading global provider of tax, accounting and audit information, software and services. It has served tax, accounting and business professionals since 1913. Among its market-leading solutions are The ProSystem fx® Suite, CorpSystem®, CCH® IntelliConnect®, Accounting Research Manager® and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill. Follow us now on Twitter @CCHMediaHelp. Wolters Kluwer ( is a market-leading global information services company. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.

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