Maximize your deductions

In 2014, there was a seismic shift in tax accounting commonly known to tax practitioners as the “tangible regulations.”

These regulations were finalized in 2013, after nine years of development, and redefine whether an expenditure should be capitalized or expensed. While this seems like a simple concept, it's not. The decision to expense or capitalize has been a highly litigated area of tax law, and the regulations attempt to add definition and structure to this decision.

The rollout of these regulations was unique. The IRS initially required all affected taxpayers to file multiple changes in accounting methods with some changes requiring retroactive application. The American Institute of Certified Public Accountants cried foul, and the IRS backed down from some of the administrative burdens that these regulations required.
Because of the complexity of the regulations and the compliance difficulty, the IRS allowed small taxpayers to adopt the new regulations without going through the accounting method change procedures.