Tangible Property Regulations (TPR)

The Tangible Property Regulations (TPR), also known as the “repair” regulations, direct the treatment of costs incurred to acquire, produce or improve tangible property. These regulations, issued by the Internal Revenue Service (IRS) in 2013, impact how businesses capitalize, depreciate and deduct expenses related to tangible assets. As organizations navigate the intricacies of TPR, it is important to optimize relevant tax strategies while maintaining compliance with IRS guidelines.

Understanding the Regulations

TPR affect multiple industries as it relates to capital expenditures for building improvements and repairs, land improvement upgrades and repairs, manufacturing equipment, specialty ventilation, electrical and piping, specialty flooring and wall coverings, specialty equipment and storage and leasehold improvements. For tax years beginning on or after January 1, 2014, TPR can provide valuable cash tax savings when implemented correctly.