In Field Attorney Advice 20154601F the IRS critiqued a taxpayer’s application of the partial disposition rules contained in the proposed tangible property regulations at Proposed Reg. §1.168(i)-8 which are very similar to those contained in the currently applicable final regulations.

In the case in question the taxpayer was attempting to use those regulations to claim a loss on partial dispositions of buildings the taxpayer owned using the late partial disposition election available for a change in method to the revised tangible property regulations.

In Notice 2015-82 the IRS has increased the invoice cost limits for taxpayers without an applicable financial statement to $2,500 for the de minimis safe harbor under the tangible property regulations that took effect for tax years beginning in 2014.

Under Reg. §1.263(a)-1(f) a taxpayer may annually elect to apply the de minimis provisions that, effectively, “bless” a taxpayer’s capitalization policy up to certain limits on a per invoice level. 

Congress’ recent penchant for letting bonus depreciation expire only to be retroactively reinstated nearly a year later has created issues for many non-calendar year taxpayers.  When their returns are filed assets acquired after January 1 of the year in question are not eligible for bonus depreciation.  However when Congress retroactively extends the application of IRC §168(k) these returns become “erroneous” as filed since bonus depreciation must be used unless the taxpayer elected not to use bonus.

In Revenue Procedure 2015-48 the IRS gives guidance to taxpayers who find they have such “erroneous” returns already on file with the agency. 

In Chief Counsel Advice 201509029  the IRS disagreed with a taxpayer’s position that certain buildings on the taxpayer’s new and used heavy and medium-duty trucks and trailers sales and leasing facility qualified as 15 year property under asset class 57.1 of Revenue Procedure 87-56.  Assets in that classification qualify for a 15 year, rather than 39 year, life for purposes of depreciation.

Facing mounting pressure from various parties to grant relief, the IRS has provided an optional “simplified” method of complying with the new repair/tangible property capitalization regulations in Revenue Procedure 2015-20.  In addition to issuing the ruling, the IRS also issued a press release (IR-2015-29) describing the relief.